All Forum Posts by: John Arendsen

As @Rachel H. has intimated try for at least a 10% CR on any RE investment you make. But as they say in the stock market, it's all about "DOLLAR COST AVERAGING" (DCA). In today's real investment World if I'm seeing 8% across the board in my overall investment portfolio its a good year.

Love @Matthew Paul's rendition a bunch. Once again it get's back to being in THE PATH OF PROGRESS.  But he's spot on. First question I'd ask is why is it abandoned? Kinda sounds like one of those old antique Mo-bile gas stations on Route 66 that were the in thing when my Dad, Buzz, and his buddy, Mocks, were driven their Model T across the USA in the late '30's. 

They were the in thing in those days. Some even had a beer stop with a pool table (that's how Buzz and Mocks made money on their journey). But the funny thing is I drove Route 66 back to the Midwest myself in '04 looking for just one of those ole pit stops and only found a few bones and nothing close to a cold beer let alone a pool table.

I would do a little research on Dodd/Frank before going down that road. Better yet I'd reach out to @Ken Rishel on the BP MH platform. I'm sure he'd have an opinion about this. Good luck.

Just reach out to @Ken Rishel on the MH platform.

Contact the Title and Registration that regulates the MHI in your state. In Cali it's the Housing and Community Development Department (HCD). In other states it's the Department of Motor Vehicles (DMV). A couple of google searches or phone calls to your State/Local regulatory agencies.

Contact @Ken Rishel on the BP Mobile Home platform.

Tread lightly on assuming the the legislative bodies, MH manufacturers, MH dealership networks, et.al. will sit around idly waiting for someone to come along and try to replace MH's in MHC's with anything other than MH's. Not that it wouldn't be a great idea.

No matter what you do to a MH be it HUD or MOD they still look like big rectangular WOBBLY BOXES at the end of the day. Having been in the FACTORY BUILD HOUSING INDUSTRY for 3 decades and having done just about everything that can possibly be done to them during that time as a general & manufactured home contractor, dealer, RE broker, developer, investor and property manager they still can't escape the stigma of being a TRAILER.

When the MH industry and its Nationwide network of GOOD OLE BOYS finally wake up to the new and modern world that's passing them by it may be too late for them but just in time for all the "TINY HOUSE" Milinneals and even some left over Baby Boomers and/or X Gens moving into the next phase of their lives who are unanimously looking for that new and modern look and States, Counties and Cities start vying for old worn out trailer parks being condemned and rezoned for higher and better use.

Just my 2 cents/sense worth. (adjusted for inflation).

@Rachel H.is spot on with her assessment. We're seeing this happen more and more in non rent control communities throughout SoCal. In fact I can hear the war drums beating in the distance with several cities due to the whole affordable housing state of affairs. Much related to California Senate Bill 1069 that went into effect on Jan. 1, 2017 which addresses the whole subject of affordable housing related to maximizing residential space with the installation of Accessory Dwelling Units ada ADU's, granny flats, etc. If the MHCO's are not careful and/or continue to raise rents the way they are in many MHC"s you will start seeing some intervention.

I've eluded to it many times on various platforms regarding questions like this. It really gets down to whether or not the park community is in the PATH of PROGRESS or in the BLIGHTED PATH of NO OR SLOW RETURN? This can be determined by doing some very thorough DUE DILIGENCE before you pull the trigger. 

• Study and evaluate the current demographics compared to the history of the trend over at least a 5 to 10 years period. Is it in or near a college or university? Is it an aging but financially sound population?
• Study employment, trade, commerce and industry trends. Are jobs moving into or out of the area? Where is the DIRECTION of GROWTH & UPWARD MOBILITY? Is it moving into or away from the area 
• Study the current VACANCY RATES compared to the past 5 to 10 years.

I don't invest in the purchase of MHC's, however, I do invest in MH's and SFDH's, I've followed these principles since I started investing in RE over 45 years ago. To date I've never had any significant vacancy issues nor have I ever lost money on a RE investment. 

Having been a general & Manufactured Home Contractor for the past 3 decades I can tell you first hand that historically the higher the rent goes the lower the value of the MH's go. 

Tenant/residents can't and won't put good money after bad. If the MHC is in an upwardly mobile (pun intended) sphere of influence they will invest in their homes by remodeling and upgrading or removing and replacing. If it's in a blighted area the opposite will happen no matter what you as an owner do.

When a new owner takes over from the previous one they have to generate a sustainable ROI or its won't turn out so well. The only way you can do that is by increasing space rent and you can only do that so fast or risk even higher attrition and vacancies over time. Thus the law of DIMINISHING RETURNS

Unless you're an experienced pro and/or a large MHC owner/s I'd be very careful about taking on such a large task on my own. If you have $$$ to invest invest it in an existing MHC syndication, group, etc. Or at least buddy up with someone who can take you through the necessary learning curves. 

That's my 3 cents worth (adjusted for inflation). Hope it helps and good luck.

Thanks @Tim Shepstone. You've been added.