All Forum Posts by: Mike Reynolds

in my 20 years of analyzing "market gurus" "economic masters", "real estate analysts", everyone is entitled to their opinion. Their predictions are as good as weather forecasters...

I live in Silicon Valley and folks have been predicting crashes since last 5 years , and homes go up 10-15 % a year...

in my 20 years of analyzing "market gurus" "economic masters", "real estate analysts", everyone is entitled to their opinion. Their predictions are as good as weather forecasters...

I live in Silicon Valley and folks have been predicting crashes since last 5 years , and homes go up 10-15 % a year...

A lot to explain here, so I will try to make it short and easy.  I currently own 2.5 acres with a covered extended stay RV park.  I owe 47K on the property, and the value is slightly over 200k.  I want to add a final half acre that is available, to make this a full 3 acres and extend the park.  The cost of building the new section of park and buying the half acre is 100K. I have 30K in savings I could also dump into this myself.  Here are the options I have with the bank.

Finance all 150K for 10 years, giving me a monthly income of 3,300.

Finance all 150K for 20 years, giving me a monthly income of 3,800.

Or include 30K of my savings and

Finance 120K for 10 years, giving me a monthly income of 3,600.

Finance 120K for 20 years, giving me a monthly income of 4,100.

I also have an option of a private loan of 60K, include my 30K, and just finish paying it all off in the next 6 years.  This option would give me a monthly income of 2,700 per month.

All loans are around a similar interest rate it looks like. (5%)

Amounts are after utilities, taxes, and all other expenses.  After the park is paid in full, I will have a monthly income of 5200 per month at full capacity (which it has stayed at for the 3 years since I built it).

The biggest deciding factor among these options are my lifestyle.  I am trying to travel most of the year and live mainly off the income from this property.  Part of me wants to dump all my savings into this, go with a shorter term, and get it paid off faster, although I would have a lower income for the next 10 years.  But that 5200 would be closer down the road, especially with route of the private loan on 6 years.  The other part of me says keep all my savings for travel and emergencies, and finance all of it, and stretch it out for 20 years.  This would let me keep my savings, have around 4K a month income, but wouldn't see the 5200 until I was in my mid 50's.  

I am fairly new to the investing scene, and still learning.  I would like some opinions or things to consider from some experienced investors or whoever else may have advice on these options and idea.  Thanks!

Found a MHP I am interested in purchasing, seller is asking 399K Property has 15 Lots, 12 occupied with 10 tenant owned homes and 2 park owned homes, I have the 20% down but am having a hard time finding lenders.  My goal is to buy and hold for 5-10 years and add 2 additional homes to the property

@Mike Reynolds Thank you for your suggestions!

I actually looked into Little Rock but it has less then 200,000 in population, and New Braunfels less than a 100,000. I assumed there should be more opportunities in bigger areas. Is that correct?

Also, are you familiar with investors who are flipping properties in those areas?

Thanks again!

Hi, @Mike Reynolds! 🙌

I am looking to start with flipping a single-family home under 100k. After my initial analysis, I am looking at one of the following cities: (in this order).

1. Oklahoma City, OK

2. Omaha, NE

3. San Antonio, TX

4. Philadelphia, Pennsylvania

5. Indianapolis, IN

6. Kansas City, MO

7. Pittsburgh, PA

I will conduct a deeper dive into each one but am happy to hear your feedback or recommendations.

A properly insured mobile home park would have:

1) Liability coverage with a balloon so that you hit $3 million + (ask your insurance agent to see what you need)

2) Property coverage on all buildings, etc.

3) Workmen's Comp that covers your employees

4) EPLI insurance (employment practices liability insurance) to management issues

5) Loss of Income insurance (this is going to be based on cost, issues and banking requirements)

I would highly urge anyone looking for mobile home park insurance to call Kurt Kelley at Mobile Insurance in the Woodlands, Texas. He insures about 3,000 park owners and is the authority on this in my opinion. Do NOT use normal agents like State Farm, etc. or any group that insures your home and car because they have zero knowledge of mobile home parks and you will end up paying twice as much and have half the coverage (or worse).