All Forum Posts by: Robert Brubaker

Devan, All good advice above There are two basic areas of

concern to start looking at on each deal you are being shown.,

The first would entail up-front Issues Requirements to meet, Price

to Value, Condition," Rentability", Prospects for eventual re-sale!, etc.

positives vs. negatives Your own comfort level.

The Second is Operations and Income issues ( most investors look

at this first! ) This would require " running the numbers" . Income

vs. Expenses and Net Income as well as other issues are considered

at this phase. This probably is the most mistake ridden part of

investor calculation : Over-estimating Income and/or Underestimating

Expenses . Each property has unique issues here. Separate utilities,

heavy maintenance "catch-up", Vacancies carried , etc, vary.

Jean Bolger makes an excellent point ! First get used to

looking over property specifics and use the tests discussed on BP for

starters. In this way you will be able be a "Ready-Buyer" when

you start actively looking. Big mistake to look for property " in-the-blind". Always apply " healthy Skepticism" on the numbers and what you

are being told. Good response to " Sales-Puff": " Show me" !

Get your valuation and Estimation skills developed and you'll find

a good prospect for sure! Best for Success!

Jeremy, You are smart to " ask around " before making a move.

As you can see there is a pretty consistent thought towards

staying in the " residential" 1-4 unit market and looking at 3-4

units not just 2 ( Duplex).

Cash flow is important ! Minimize utility Expenses: ( at least separate electric , Water if possible).Separate Heat etc. is desirable.

You want to "hit the ground running" so for your first -stick to minimal

"fix-ups". Only reasonable rents required to give a desirable return!

Look for property that will be attractive to re-sell when the time comes.

A good investment property should have both Rental Income and

Return-on Equity potentials. Keep in touch! Best for Success!

I am putting together some " in house" info for

use by my " team" on " mobile Homes. for "listing profiles".

Not together yet but some items of concern emerge clearly,

glad to share!

- Age of unit ( year of Construction) . Quality of Construction

changes 1976,again1994(. Insurance , Financing heavily

affected! here ) as well value ranges.

- Lot size and sq ft. 0f unit interior in relation to prevailing Market

area "norms"

- Special Lot and Location features eg Lake-view, Cul-de-sac,

desirable HOA , etc.

- HOA Fees and Financial Stability

- Verification of" HUD Tag" and Serial# affixed to unit

- Possible issues on" built-ons" ( carports,screen-porches,fencing)

present- affecting insurance ,code compliance , or re-sale.

Couple of recommended sites for ideas for" physicals" and

" valuation"

www.nachi.org for inspection items

www.nada.com for a look at their "mobile home -valuation tool"

Added notes:

Get familiar with HUD Title 6 Standards . affecting

Mobile Homes

Get a fix on the Difference between "trucked-in" Pre-Fabs and

Mobile Homes in Newer units.

That's about it for now still " under Construction" here.

Keep us informed on what you come up with. This is

a " nitch" pretty-much overlooked! Best for Success!

-

Joseph C has an excellent point. !

Thanks for sharing Raymond!

As the Article notes, such a trend is not a sign of a Healthy

Marketplace. There is a difference in a Short-run of " Strong

Demand" and a Market ready to bring in fresh Buyers and Regularly

turnover existing inventory. Still mixed results in South Florida!.

Scott S. List out your Expenses! Are these Estimated ?

Anytime your expenses are way below 50% you

might want a second opinion on items left out !

Seems very low. Just a thought.

Michael If you are a multiple floor property Washers in

the units can be attractive to prospects- but a

" nightmare" for residents. The use/misuse ,

off hour operation, and water damage from

spills,back-ups,etc, can become a real headache!

Complaints about noise,leaks and breakdowns,

One tenant on another,requests for maintenance,

etc. sure to follow.

The common wash area is a good feature. Just

make sure it is safe,secure , and well lit. If you

buy the machines you will have to figure cost

of some regular oversight. The profit potential

wouldn't be great in a triplex so you might want

to adjust rents slightly to cover added costs .

. Establish" Rules for Use." and "Residents Only"

Restrictions

This type of Application fee structure is common .here.

It could reflect a view of difference in the Legal Status of

" Married" vs. " Un-Married" individuals. There are

definite differences in the obligations of the parties

and their Rights to property - The Idea being the "union"

is now one. Having credit together, resident History Together

probably looks the Same on credit checks and

differentiating is a now a " dated" idea. ( no Pun intended)

Interesting point on " Background Checks" and individuals purposely

keeping separate credit , which Steve Babiak points to. There

are definite " holes" in most PM 's determinations on

tenant credentials. The application process for many has

just evolved from what they have traditionally done.

The main reason for the "break" for married couples

usually stems from the excessive fees charged for" checking",

and are offered to off-set the "turn-off" of such fees. If you really

want something to think about: ask the PM's for their written

policies on the review of tenant credentials and the basis used

to recommend approvals: Yipes!

It's worth reminding ourselves that anything of substance

in Real Estate has to be done in writing ! Phone calls don't

get it! Further, any exchange you have had with HUD is

between a Seller and Buyer not for outside review by " on-lookers".

Any further contact needs to be directed to HUD and your Title

Co. . You should insist that all further communication be via letter

particularly as legal action was mentioned.

Chances are you won't hear from this person again but if you

do-let her tell it to HUD! You are not responsible for the process

of the foreclosure period! You have a Recorded deed. This person

has an "angle" Be concerned -but not worried. Best for Success !

Sorry guys. The weather in Florida isn't so great you want

to work for nothing! I don't see how 6.9% makes sense anywhere.

Passive investments can' t be doing that bad.

In this case The vacancy Factor and " turn-around" expense for

the Average $ 2500/mo rental here are considerably higher than

these estimates I don't see anything factored in for " Management"

for either a PM or Compensation for time spent.

I think the points on " Rentability " of expensive rentals and

the risks of " exposures " on the large investment in one unit should

get one to " pause for thought". You owe it to yourself and your

family that the " hands on" type of investment Real Estate presents

"out-performs" passive investments in the alternative!

Being conservative in your income potential and allowing for

even minimal " over-runs" in expenses wipes out any profit

potential at all here. It's not about Florida it's about the Deal !