All Forum Posts by: Mark Kvam

Thanks @Tim Farrell and @Jordan Schoonover for your input.  I did not realize Fallon had so much rentals but makes sense with the base there.  Seems so few properties are coming up and they go high and quick.  Much different here in Nebraska.  

Looking at relocating back to my home state of Nevada.  Anyone have a feel for the market in rural areas?  I am specifically looking at the Fallon, NV area.  Thanks.

@Brian Burke

 great info. Thanks, I will get right on it.

Looking a property that is in foreclosure and just found out the state has just put a lein on it due to seller not paying state income tax.  How can I find out if the IRS may have a lein on the property?  Can the IRS come put a lein on the property after we have closed on the sale?

Thanks in advance, Mark

@Bruce May Incredible! If that is a true reflection of what this park is like it is no wonder that he hasn't paid his taxes and is facing foreclosure! Thanks for the insight and analysis.  I am still trying to find the right property where the expenses don't eat you alive.  I need to look at smaller parks to make the down.

@Ariel O. @Bruce May

 I thought the same also but was unsure what percent to account for repairs, vacancy, and cap ex.

22 space park with 19 pads occupied, 3 of 19 are park owned but I am assuming only pad rent for this analysis, 30 storage units (10 large, 20 smaller) currently 2 units vacant.

Expenses per month:

Stated by seller:

water $570

sewer $570

garbage $160

taxes $433

electric $10

Assumed by me:

Repairs: $284 ( 5 %)

Vacancy: $114 (2%)

Cap. Ex.: $170 (3%)

Manager fee: $250

Income:

19 units x 210 =$3990

8 large units x 60= $480 (10 units total-assumed 20% vacancy so used 8 units)

16 small units x 40= $640 (20 units total-assumed 2% vacancy so used 16 units)

water charged back to tenants= $570

Working on a offer on a small park. 19 owner occupied pads, with 30 storage units. 40 year old park, city sewer and water, 1 paved road. What should I budget for repair/maint. and Cap Ex? I have been using 5% for repair and 3% for Cap Ex. Seems high.  Park is in good shape now as is the paved road. Very little common grass to mow.  pads are fenced and tenants takes care of their own yard.

@Account Closed Thanks for the input.  I may be putting to much value on the storage spaces.  Also I need to consider you idea that he may need to be In the hot seat a little longer and would consider a more reasonable offer.  This is my first park and I want to be careful.

Thanks again, Mark

@Brian Gibbons @Bruce May Thanks for the referrals and encouragement.

I will keep you posted if we proceed with the sale.

Thanks, mark

Small park 22 spaces (16 owner occupied-3 park owned-3 vacant lots) with a 30 space mini storage also. $415k asking price.  My offer will be $385K.  Owner very motivated as headed towards foreclosure.  Says he won't let that happen but don't know what his plans for that are.  Property seems generally stable but owner lost his manager last year and he has health problems.

Owner wants to carry paper but needs $100K down to cash out a $72K non assumable loan and $23K in back taxes (4 years).  He Will carry at balance @ 4.5%, amort. 25 years, 15 yr balloon.

I have $76K cash for a down.  I would like to offer to bring the current taxes up to date, pay down the loan 53K, leaving a balance of 19K on his loan.  Then I would lease the property for $3000/mo designating $2000 payments to the loan and $1000 to the seller until loan is paid off (approx. 9 mo) at which time, I would exercise my purchase option on the balance.  The $1000/mo to the seller would not go toward the purchase price.

The balance would be the 385-53-23-19=290K.

I am a little hesitant to put so much cash up front with only a lease option agreement to assure the sale after the 9 months.  Any help here?

Mark