All Forum Posts by: Watson Smith

I always do this... For the good tenants. I go to Honey Baked Ham and pick them up a small meal for the family. I spend like $40 each house and hand deliver it.  I've had some tenants for 5-7 years now. Yes - It's a business in the end but the way to make money in rentals is to keep tenants happy, paying and in your house.  For that to happen they have to respect you and see you as a person... Not a bank.  I'll spend $40 any day for that.

 Yes they have too much time on their hands.  Remember, they are retired and rarely leave so they are looking for things to keep them occupied.  My retired renters and among the best but require a lot of time.  It's not a bad thing though.  They keep everything in line but if it gets to a point where they become extremely nick-picky you'll have to push back.  Good luck.

This isn't the one in Cusseta is it?  If so, I looked into it as well.  I said no due to a number of reasons but my main concern was the town.... The town was just bad. Negative growth and a high vacancy rate...  One major employer, an army base, that was on the cut list a few years back.  This would be a fixer up and not something I would want to gamble on for my first MHP... (or second) 

Do your DD and run the numbers.  If you truly believe it can work...  then go for it.  Just understand it will take some work... and luck.  High risk equals high reward... But it can also bankrupt you.  I would personally move on but thats my choice.  Best of luck.

From what I've read and been told is that you value the POH on their blow away cost... 3-6k each depending on how well kept.  I've seen some people value them at 1-2k and some add 8-10k each. 

2013 Dodge Ram 1500 crew cab.

It replaced my 2002 f15 with 265k.

Bought it new with 1.5% interest and 100k mile year warranty.  Used trucks at the time were around 4k less.  I'll take nearly free financing any day... :)  Minus the gas milage its great.  The Ford's have a few more bells and whistles but was going to run me 8k more.  I took the baseline model Dodge and I'm very happy with it.

Depends on what type of "foundation" problems we're talking about..

I provide dishwasher, refreidge and stove.  I don't provide washing machines, dryers or microwaves.

No don't cut their power off.  

I had a bad tenant a few months back and cut their water off when they didn't pay. I figured if the water company could do it when they didn't receive their money then why can't I.. Makes sense right.  Long story short... it's illegal for the landlord to do.. It did work though.  They got out pretty fast... But man those bathrooms were nasty!!

I don't see the need to hire an attorney for the eviction though.  All you do is file 1 piece of paper at the magistrate court and show up for court.  The sheriffs office serves the papers.

Most times the tenant won't come and then you're served with a writ to evict them a few days later.  If they do show up have all your ducks in a row and it should be fine.  They'll be given 7 days to leave.

-15 Mobile homes all on individual lots and fully rented

- Sewer/Water by the city and metered to the tenant

- Rent for $450 each

- Average lots in the area rent for $175 and homes this size $475

- All 15 homes are located on the same road next to one another

- 2.3 miles to walmart and city population of 61k

Question:  Since these aren't in a "park" would you still value them the same way?

15 x $450 x 12 x .5 / .1 = 405K <-- Seems way to high

or

15 x $175 x 12 x .5 / .1 + the blow away value of the home (2k each) = 187k & 157k w/o homes

Suggestions?

According to the numbers you gave us the this park should be valued at 956k with a 6.21% CAP. You don't count vacant lots.

$11,780 (total rent per month) X 12 X .42 / .0621 = 956k

I'm still very new to MHP investing so let the more qualified elaborate more on this topic for you.