All Forum Posts by: Sunny Abbasi

Hi all,

Looking to speak with a Mobile Home Park investor in or around the Metro Atlanta area. Recently got introduced to MHP and would love to be able to chat with someone who can share some practical knowledge in the space.

Thank you for your time!

Hi all,

I recently got a lead on a multifamily (15+) property in a mid-size town Ga (population 50k-100k). I walked the property and surrounding area. My analysis is this:

Cons- I personally found the downtown and surrounding areas to be very depressing and almost empty (vacant shops, office spaces, neglected buildings and storefronts). Based on my research there is a lower than average population growth and higher than average unemployment. The primary area employers are a hospital and military base. I was unable to find anything online suggesting any future plans for investment/ revitalization so I wouldn't be counting on an appreciation play. Additionally, I don't normally invest out of town so I would need to hire property management.

Pros- The apartments are well located within the city, and appear to be in good condition. The cash flow looks great and property seems to have great potential for value add by increasing rents. There are a few apartments in the surrounding area that have decent occupancy (90% or a little above). My current investment strategy is multifamily buy and hold, focusing on cash flow.

To me, the market rent (~$750/ 1 bed) is surprisingly high when the city seems to be dying and property values are so low. However, I keep running the numbers and based on the market rent the cash flow is really solid. 

I'd love to hear from investors who have invested in areas where the cash flow is good but the economic indicators are not. How did things turn out in the long run? Thanks everyone for taking the time to read and respond!

Thank you so much everyone for the advice. I really appreciate it! have a few followup questions and would love to hear your thoughts.

1) There are a lot of factors to consider when evaluating a potential property. Do you guys recommend any specific approach  as far as doing a quick assessment prior to making an offer and deep dive after the offer/property is under contract,  to make the evaluation process more efficient and systematic. 

2)Any thoughts of some possible tested exit strategies that you follow and reasons as to why you prefer one over the other?

3)Any other tools that you guys recommend for market research. I am primarily looking at Loopnet comps (very limited data and timing consuming), Zillow , Realtor and MLS rental data and Rentometer.

Thank you for your time! 

I've bought and sold a couple SFHs here and there, but I recently read Rich Dad Poor Dad and I am pumped and ready to actively pursue real estate investing. I've been reading a lot about multifamily properties and I expect that it has its own issues but it seems like the way to go.    

To find what I am looking for I may need to look outside my immediate area, so if I am looking at a property in an area I am not familiar with, for example, in Calhoun, GA:

• I've consumed a lot of content over the last six months and understand calculations of CAPS, NOI, COC, IRR etc etc but I don't understand how to find the right comps for a property I'm considering? I can't look up the recent comps like I can for single family homes.
• When looking at a listing how do I determine if I can add value (increase rents, make improvements, etc) to get a B class up to an A class property, or a C to B? 
• How do I feel confident in my calculation of the purchase price and market analysis? Broker calculations of CAP rates seem to be all over the board, is there a way to verify rent roll, etc?

I have always been a learn as I go kind of person, doing most of the work myself so I know how it’s done. However, the stakes for these properties are a little higher and I have a family now so I want to be a little more cautious and prepare myself as best as I can.

Thank you for taking the time to read and respond.