All Forum Posts by: Garrick Oconnell

Hello

I would start by looking on zillow, etc if you dont have MLS access at sold properties in your ARV price point and know that you cannot go cheaper than there flip options to get the desired ARV. Check that against the available high end flipped properties and you find a good average.

We use a very inexpensive granite counter-top, laminate flooring the grey color allen+roth from lowes, and always change the windows $250k price point. Windows are expensive.

But I would change all that in a minute if the comps had higher upgrades to make sure I get full ARV.

I am familiar with this as we own rentals in Flagstaff

This is definitely a real thing and prevalent in flagstaff 

I am not familiar with all the caveats, but the major one for us has always been Owner occupant restriction. There are town homes that are frequently for sale in Flagstaff that have this restriction that have been sold and re-sold many times but always with the same restrictions. 

There is a desperate need for affordable housing in flagstaff so it would be hard getting around this would be very difficult.  

I live at the intersection of Southern and priest which is the very edge of Tempe before it crosses into Phoenix. I would say that the rents would drop as the property values do considerably. Sometimes I go to the Food city at the intersection of 48th and Southern and the entire neighborhood changes drops to a C. This is not a bad thing but don't expect to easily draw a quality tenant when the area is still very rough. 

Hello Dylan,

It has been my experience that manufactured homes place a very strict limit on the amount of units that can be rentals. Usually a percentage. You usually cannot get a standard loan on a manufactured home older than 1980 that is not affixed to the land (meaning you do not own it along with the actual type of foundation.) Usually the community has the over all say on who you can rent to- they can turn down applicant after applicant. They usually limit the amount of non family members in one home, highly regulate visitors and length of visit, then after all that they can dictate who you can sell the home to when you want to exit. This is not a list to scare you but to inform you.

Can you rent the manufactured home

what is the rental process

what is the sale process

is there a rental limit for the community

do they restrict lease terms and visitors

can you finance the manufactured home (usually not on single wides and park models) this is important because most people do not have the $20,000 cash to buy your home when it is time to sell and most investors do not want a manufactured home with out the land unless its a steal.  

etc...

You should also know that a manufactured home community owner is not a HOA manager or compares to a rental management company and can kick you or your tenants out for various reasons that do not apply to normal landlord tenant law.

We own and manage 3 manufactured homes in flagstaff BUT we own the land they are on on the west side of flag.

I would be interested to hear what people have experienced

My family has rentals in Flagstaff

http://www.doctorevictor.com/

Wow I would love to know how your Airbnb is going in flagstaff

please keep us informed

I manage rentals in flagstaff and the biggest hurdle is always workforce and availability during the seasons. 

Hello @Cory Eckles do you ever wholesale your properties? 

The responsibility for ADA upgrades usually follows how the lease is written and has the tenant done tenant improvements that alter the accessibility i.e. counter tops, bathroom vanities, doors, dining room walkways. 

I have generally seen per lease franchisees are responsible for the interior of there suite from the threshold in and the landlord is responsible for the common areas such as sidewalks, restrooms in common area, and parking. 

Many franchises in CA have been the target of malicious serial plaintiffs suing for ADA violations usually dragging in the property owner. So it is wise to maintain a ADA compliant parking lot and common areas and to clearly describe who is responsible for what in the lease especially when many franchisees perform large TI. 

I would say your numbers are off on the rehab closer to 30+, and the rental income seems very high. 

Not sure who you are working with to buy that house but try to get it for 160-170 tops to compensate for the work to be done. Otherwise its not a deal.