All Forum Posts by: Orlando Paz

Sounds like the US is late on the rent payment. They are trying to evict us.

@Harold Anderson - Once I’m up and running, I might consider doing some renovations and fix/flips. It sounds like once you establish rapport with management and those who live in the park, everyone pretty much opens up and welcomes you. Having such a great support group from within, can be extremely beneficial. As an investor in these parks, these are people who will remember you. That’s a great advantage in itself, for the obvious reasons. It almost sounds like you are the park celebrity! J… It kinda takes away from the derogatory image that mobile home parks have. Definitely a good thing!

@Michael Meeks - You are very fortunate to have found a park owner that will be retiring. That opens up opportunities for a good deal. I hope it works out for you. I have an interest in MHP, but realistically it is not something that I would be able to get into right away. It seems that creative financing for MHP is more theory than reality. To get a park owner to work with you, they would need to be in some sort of distress or simply looking to “hang up their hat”.

I can certainly see the opportunity and demand for mobile homes. As you mentioned, bank lending for these homes are non-existent, and there is a high demand for affordable housing. On the down side though, I just wish we didn’t have to deal with the new Dodd Frank regulations. 

Prior to considering the purchase of a small multifamily building, would it be a good idea to talk to existing tenants? As added due diligence, I would be curious to get tenant feedback on what underlying (and possibly undisclosed) issues the property may have.

Prior to considering the purchase of a small multifamily building, would it be a good idea to talk to existing tenants? As added due diligence, I would be curious to get tenant feedback on what underlying (and possibly undisclosed) issues the property may have.

@Harold Anderson - Sounds Like the deals presented by management comes with the added bonus of an education. With me, Craigslist is almost instinctual. Not necessarily my preferred method of looking for a mobile home though. I think that driving through the parks and jotting down phone numbers from For Sale signs, is another way good to reach out to sellers. 

@Harold Anderson@Howard Abell@Bill Neves - Seems that the common theme is to develop a good relationship with management. I can certainly see that being the case. A couple of months back, I visited two local parks. Both experiences were pleasant. The management was very cooperative. One of them gave me leads to several residents who were selling their homes. I guess my conversation with this gentleman should have been taken with a grain of salt.

@Bill Neves - Your input is very encouraging and very informative. After getting all that negative "vibe" from the gentleman I spoke to, your feedback has certainly helped. Also, I'm glad to hear that you were able to get the owner to cooperate with you. It's a shame you had to go through that lousy experience though. As far as finding such great deals, do the managers usually provide them? The only "deals" I've seen, are usually on Craigslist.

This topic hits very close to home with me. Although I now understand the idea behind rent increases, a year ago I was the angry bitter tenant. From my perspective, I could not understand how my rent could keep going up annually. As I was already struggling financially after my separation, it just seemed like there was no sympathy. It all seemed like a very robotic and inhuman system. As a result, I am now typing this out of a room that is about 10x11. I had to downsize to renting a room out of someone's house. Although I my experience was not a good one, I now have a better understanding as to why rents are raised. Once I get back on track, I hope to start investing in small multi family buildings. The process will probably repeat itself, as I will be perceived as the evil and money hungry landlord. I can understand that there should be no excuses made on behalf of a landlord, when it comes to rent increases. However, knowing what I know now, I do intend to make rent increases very, very clear from the moment a tenant applies. I would even go as far as to devote a full page document explaining the idea behind rent increases, and why they are necessary. Some tenants can't be educated, but for the ones who can be enlightened; it may make the difference between a bitter tenant and a tolerant tenant. I know that many "hard core" landlords may disagree with me on this, but as someone who has been in those shoes, I prefer to be stern with a human approach.

@Hattie Dizmond- I appreciate the well thought out response. I've been thinking about doing a few rehabs, in order to build the funds needed to start in other areas of RE investing. Just recently, it was brought to my attention that not all areas are suitable for flips. So now I find myself questioning this initial strategy. My only option right now is hard money, so that just adds to the stress! :) I need to educate myself further, and make some careful choices.

Welcome to Bigger Pockets. Ask away! There is lots of wisdom, and a great group of people on here.

I think that one of the biggest risks with a buy/rehab type of investment, is finding a buyer quickly. Like many would-be investors, I worry that I will end up losing money through holding costs. This scenario worsens when there is hard money involved. Just recently I learned that not all parts of the country are suitable for “flips”. I look at the area that I live in, and can’t help but wonder if I would be making a mistake.

I live in an area that is surrounded by subdivisions, and a sea of HOA's! The older parts have a mix of very well kept homes and others that are noticeably not as well kept. In the subdivisions, most homes are in the $150k to mid $300k (depending on size and subdivision). Homes outside subdivisions range between $100k and up to six figures (in some areas).

My doubt about the flipping market sets in, when I see some beautiful well kept homes in subdivisions, sit empty for months. Many of these homes are foreclosures, and some actually have reasonable prices for those who are seeking a home to live in.

If such nice homes are not getting sold, then my guess is that flipping an older home will be much more difficult. My only solution would be to buy low/sell low and still make a small profit.

With all this being said, what would be a good flipping market, versus a buy/hold market?