All Forum Posts by: Gaspare U.

Hey Kim, i have zero experience with Mobile Homes. Members here aren't going to be quick to reply to walk a person from ground zero. I would recommend you ask a question like:

"Hey I'm looking to learn about investing in Mobile Parks. Anyone have any recommendations on a podcast to follow or a must read book to help me get started?"

Then you can start asking questions that have you confused about specific items. Just my two-cents and wish you luck!

I don't know the answer, but what I do know is 1031s are very delicate. One wrong move and you could jeopardize that entire process, and potentially risking tens or hundreds of thousands of dollars. 

I would NOT under any circumstances rely on any answer given posted in a forum. Please call the company your partner is using or a lawyer familiar with 1031s.  

@Falgun Chokshi is the place vacant? I ask because finding a tenant may take a while. I would be too nervous for a vacant single tenant that is so specific.

Having grown up in Queens I don’t think the OP has enough space to build two homes. I would bet she means one home that is a two unit (under and over). 

If there is enough space for side by side I would 100% do this. Those apartments are more desirable. 

I would also consider trying to make it more units. Can it be zoned for 3,4 or perhaps 2 Fam with legal walk in?

Because you own the land and no mortgage that is a HUGE advantage since most construction projects go over time allocations. 

I would talk to builders in the area and more importantly talk to people who have built new. See what they like and what they wish they would have done differently. 

Try to have laundry hookups in the apartment and make sure all utilities are separated. 

Good luck 

@Jaysen Medhurst

Thank you for the reply! Ok so I’ll use reserves going forward to describe that pool of cash.

Are you able to give an idea on what you feel comfortable with for reserves?

Anyone else wish to share what they look at when deciding on a proper amount for reserves? Perhaps offer a recent example.

Thank you

Just a quick look, seems people on BP seem to allocate anywhere from 20-25% for vacancy, maintenance and capex. You may be a bit shy on those.

Also do you think you can get 30 year loan at 4%?

I know a lot of people on MF use anywhere from 20-25% set aside between Vac, Maint and CapEx (trio) which is fine. My question is, is there a level you are comfortable setting aside? Let me explain via an example.

Let's say you purchase a multi fam and the Gross annual income is $100k. So you should set $22k per year for this trio. After 3 years you have accumulated ~18k (22k minus capital spent on the trio per year) at what point do you stop adding to this "fund"?

I originally was thinking after $30k (let's assume for the most expensive cost replacements: a roof, kitchen, parking lot, etc.) anything above that would be allocated elsewhere (reduce loan, investor debt, income, etc). And as things come to surface let's say a problem tenant. In this example, it costs you $4k in lost rent, legal fees, apartment clean up and  paint. That fund is now reduced to $26k. You again begin to build that fund up to $30k.

1. 1. Is there a professional term for this "fund"?
2. 2. How do you judge exactly how much cash you set aside for this trio?
3. 3. Is there a term for this "trio"

I rather use the correct terminology, so thank in advance for corrections. If I'm not explaining myself clearly please let me know I'll try and re-word it.

Thanks in advance!

I have no experience in this but in an attempt to stir the "pot" I will toss in what I have seen.

Unless you are in "bad" areas I do not see many homes in NJ going for a big discount. Let's say you are looking for a home in a middle class area that offers good schools, transportation to the city and low crime. If that home is less than 90 min away to a major city via transportation, with a school rating of 7+ and you feel safe going to the local store at 11PM for a jug of milk there is a huge premium.

You are competing with people who will pay more for that quality of life. You and I are looking at it strictly as an investment and a numbers game. The competition is looking at this as a place to live and raise a family. They will pay a premium for this because emotions take a role. 

The other barrier to entry is the contractor. If I was to hire a contractor to do some major work in a 2 family in a nice area the cost would probably kill the deal. They normally charge a premium. If the avg remodel in that area spends $35k for a kitchen remodel and he's making $7-10k, how would he price your $12k Kitchen remodel? 

In NJ i think you need to look west or south, away from Manhattan and where public transportation is not a key factor. The only opportunities I see close to the city are flips. And again, you have plenty of competition from builders.

Polite feedback is very much welcomed. I would love for someone to shed some light on this where it could be effective. Nothing would make me happier than a BRRRR so close to home.

@Armand Munoz following along as I too am interested in this strategy.

@Basit Siddiqi please edit your original post to say Tuesday.

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