All Forum Posts by: Steven J.

Thanks @Rachel H. The homes that he has recently fixed up look really nice but of course with older homes there is always going to be some sort of maintenance to work on. 

Did have a discussion with an electrician about upgrading some of the 60 amp service. Unfortunately, the power company is recently requiring new fancy service boxes to be installed so this could add a fortune if that's the case. I'll find out next week what the word is and renegotiate lower price if thats the case.

@Michael Beeman and @John Hagen Way to knock it out of the park you two! Sounds like you've got a solid business model and approach that works. I'm absolutely fascinated by the investors in smaller markets because they fill a niche that others won't consider. I focus on mobile homes and parks so I can appreciate the difficulties of 'non-traditional' deals. I'd love to speak with both of you more in depth discussing some of the deals I've come across as well. More so, I'd like some more insight into the smaller markets and how you manage those deals. I had an hours long discussion with a fellow from Netwon IL about how they want to start a property management company and I'm not sure how to handle the smaller markets from that perspective - I would love any insight!

Thanks for sharing you're great story and making a killing on all these properties!

Thanks for the schooling @George Skidis! I appreciate the insight! As far as bringing in new homes I'd have to really be convinced to do something older than 1980 because they generally just need too much work.

We'll have to make sure to connect if we're ever in eachother's neck of the woods.

And if that doesn't do it use Once N' Done No Rinse Floor Cleaner. I found it at Menards not with the cleaning section but in the flooring section. Its more of a cleaning/fininshing product and works really well!

I second that you should check with zoning. You'll have to make sure you have the capabilities of water and sewer available as well as electric. And check to see what the process is for rezoning. My understanding is it can take a lot of money and a lot of time so you're in it for the long haul. For only 2 mobile homes on their own lots my guess is it probably doesn't pay off. Who knows, the city may be okay with you putting the two homes on the lot together and its less hassle.

Welcome to the group @Josh Durham. Make sure to check out the meetup.com for local meetups in the area. There are quite a few from Peoria to Bloomington, Champaign, and Decatur so plenty of opportunity to network with others. 

Congrats on your first closing coming up! I wish the best for you!

I'd love to have attended this, it sounds very promising but unfortunately I've got plans already at that time.

What about commercial on a mobile home park in Illinois?

Also considering partnerships on this property. Partner brings the down payment and sits back to collect. Partner's invested money is returned first and after that we split the profit moving forward.

Thank you all for insight! @Jon Dorsey I did CAP the POHs as well. I'll work on breaking that out.

I guess I'm not sure on how to break up the expenses for the two. Is Payroll a 50/50 split between the two; does landscaping get expended to the land only since its exterior?, etc. I find that I can fudge those numbers around until I'm happy with it. Regardless, split, it does put the Cap for land at 3.55% and POHs at 11.2%. By raising lot rents $50/month that does bump it in to the 8% range.

@Ryan Murdock The homes are indeed older, early 80s and 70s for most but have been well taken care of by the park owner. I did include much of the management as R&M so I've reflected that differently. The park is on city water and sewer but does have a sort of holding tank for the sewer before its connected to the city sewer. Water dept. has never had any issues in our out of the park but has no knowledge once its on the property. It likely is older plumbing that will need serious maintenance.

@George Skidis Those are some good questions to tackle.

1. Why do I need to check the county only? It was my understanding as long as the county allows transport and approval of the home its okay. School me on this one, please.

2. Yes, I'm figuring for ending up with the homes as I sell them to tenants over time.

3. Agreed with the PP taxes

4. Built in 1966. I'll be driving through today to inspect power poles. I believe the meters that need to be upgraded could be done from above instead of digging - but I really don't know that. Again, school me, please.

5. I need to verify the water lines. Thanks for the ball park number on replacing - I'm assuming that will have to happen

6. Very few masonite homes, most are steel sided and many have been nicely repainted on the exterior.

7. Thanks for the heads up on that.