All Forum Posts by: Nathan Harden

This doesn't give us enough info.

 How much was rehab? Holding costs? Closing costs?

No. Cold Plunging does not give you a supernatural power to all of a sudden become a mogul....

PLENTY of investors out there that crush it and I have never heard anyone of them say that they went from zero to hero because they got into cold water.

My first ever Buy&Holds were out of state.. You mentioned that you live in Cali and the house you are looking at has a basement... Midwest perhaps? If so, I did the same thing. I live in WA state and bought my first 4 properties in Ohio.

Word to the wise, it can look good on paper but the old saying "you get what you pay for" holds very true in a lot of those markets. Be careful where spending your money over there. You can strike Gold or be dead in the water. I recommend visiting the area first. A $500 plane ticket could just save your bank account.

I am just starting to dip my toes into MHPs.

From your experience, do you find it easier if you have all mobiles in the park being tenant owned rather than being parked owned?

Insurance and taxes are on the rise. It is more crucial than ever to keep rents at market value.

If this deal passes and we are only able to raise rents 5% a year, it is pivotal that we keep up with the market. Not only will this help offset the rising and insurance and taxes, but if you're already 3-$500 behind in market rent, you will be shooting yourself in the foot because lets say that deal passes tomorrow (it won't). You're only able to raise their rent 5% a year but guess what? Insurance and taxes are on the rise so if you're not on top of the rent, the raises of insurance and taxes are going to eat away all of your cashflow. 

I've talked to landlords that are like $800 under market rent because the tenant "has been there for awhile" and now they're panicking because taxes and insurance just went through the roof. They are scrambling to bring rents up to market value before we are (possibly) only able to raise 5% a year. But trying to explain to a tenant that their rent is now going up $800 is a lot more difficult than giving yearly rent increases to stay ahead of inflation, taxes and insurance. 

When everything around us is rising in taxes, we are not the bad guys by raising rents to market value to match what we are getting dinged with yearly.

Great post and I'm glad you found a solution to what could have been a nasty problem.

Bro... Take this deal and run.

Remember to take out money for vacancies, repairs, management (if needed) and CapEx.

That being said. Good seller finance deals are worth their weight in Gold. They do not grow on trees so when you find one, even a decent one, take it. Not every hit has to be a homerun. 

Yep, I would buy this all day. Solid ROI.

The real question is how spot on are your numbers? Can the rehab be done for $70,000? Can you see the ARV falling to $375,000? Always better to be prepared for a "rainy day" than not.

Still, buy it.

Use your commission as leverage. Tax benefit is to take as small of a commission as possible to still pay brokerage fees. There is no point in taking a full commission, getting taxed on that commission then dumping all of the commission back into that same property. 

No point in saying "I got a $20k commission check" just to turn around and dump it into the downpayment for the same property. If you are able to waive your commission and take $20k off the purchase price instead, that will save you in taxes because you aren't bringing in a $20k paycheck.

 Subto won't work here. She has way too much equity in the property.

You could Subto her existing $590k mortgage then she seller finances the rest but that is REACHING. 

If I was in the sellers shoes, absolutely no way that I would risk Subto. Especially since you're telling us that she essentially has 50% equity. 

No. Not at all.

We (as agents) pay the brokerage fee out of our commissions.