All Forum Posts by: Todd Norris

@John Hixon  I love these properties. If you could get financing on $225,000, your 20% downpayment would be $45,000. That means you'd get your money back in just over a year and the rest is gravy! ...at least that's the initial view.

After you get over the initial excitement:

1 - look into the condition of the units which are park owned

2 - ask for several years of P & L statements

3 - look for insurance, property tax, repair costs and inspection expenses.

4 - double check the income numbers to be sure the 2011 and 2012 net incomes were as good as the one presented to you.

5 - figure out how you plan to manage the place and factor that into the numbers.

if, after closer analysis, things still shake out anywhere near 100% cash on cash, jump on it!

Looks really promising!

@Brandon Turner , thanks for the tips. I haven't read the post you mentioned. will do so now. keywords are set up, and I'm getting some really useful stuff pushed to my phone. love the info and the wisdom of the community. also love the openness to accept newbies like me :)

@Brian Burke Did you recycle :) That's the worst house I've ever seen. Thanks for the entertainment.

@Darren Budahn 

I shy away from using "projected" rent to calculate deals. I'd rather not make a decision based on the best-case scenario, because it is unlikely that you'll collect the projected rent. I'd ask for 3 years of Profit/Loss statements and calculate your ROI based upon real numbers...not projected. Also, make sure you factor in property management, if you plan to use it. That additional 10% gross rent expense can be a deal killer! Of course, not an issue if you plan to manage it yourself. Lastly, make sure taxes and insurance are factored in there somewhere.

Gather all the numbers (utilities, insurance, taxes, mortgage, etc.) and compare to the average annual income over the last 2 or 3 years. If the cash on cash % meets your standard, then I'd say it's a good deal for you. If it falls short, then maybe you need to keep looking. 

Good luck!

@Shawn Holsapple - thx for the great resources. I listen to audio books on my am/pm commute, and I have listened to several of these titles. I'll add the others to my library asap. I'm current on BP podcasts, and I particularly loved #75. I haven't heard of flip2freedom, but I'm thrilled to have another podcast to digest throughout the week. I'll start with #77. What an awesome site! Why did it take me so long to sign up on the forum?!?

Thanks, everyone.

Joe, I'm not narrowly focused (yet). I'm most interested in small- to mid-sized apartments...maybe 12 to 40 units. However, smaller units like duplexes would work for me also...with the right cash on cash return.

Hi, everyone. Glad to finally take the step of joining the forums. I am a co-owner of a couple properties (a duplex, a 12-unit apartment, and an 11 unit mobile home park) in the Northern Indiana region. Looking for wisdom in the multi-family and mobile home areas. Working to expand significantly over the next couple months. Excited to learn from those who have "been there; done that."