For the Pilsen property, what's the age of the roof, mechanicals, plumbing, electrical, windows, etc? 

First month is drawings, permits, and demoMonths 2-4 are construction: HVAC, plumbing, electrical, paint, trim, flooring, kitchens, baths, likely roof and exterior paint/sidingFinal week is punchlist, landscaping cleanup, listing prepComing soon to pending is typically about a week30 days to close

It’s just math and risk.Most of the homes investors buy off the MLS are properties that retail buyers can’t or won’t touch, outdated systems, safety issues, old roofs, bad layouts, deferred maintenance.

Theysaid that our 2 year old roof needs replacing, our one year old HVACis improperly installed, and that our perfectly working septic systemalso needed to be replaced along with lots of other newer items.I guess they wanted to knock the price down $50,000 or maybe a lotmore. ....

I’m considering a 1031 exchange and would like feedback from investors who have experience with mobile home parks, particularly smaller, park-owned operations.Current Property (Selling):Duplex purchased in 2021 for approximately $145,000; estimated current value around $210,000\Loan balance: about $90,000Gross rent: $2,400 per monthNOI: approximately $16,000–$18,000 annuallyCash flow after mortgage: around $750–800 per monthLow management requirements and stable tenantsReplacement Property (Under Consideration):Seven-unit mobile home parkAsking price: $395,000Rent: $750 per unit plus $40 for water (total $5,530 per month; $66,360 annually)100% occupied with long-term tenants, several in place four to five yearsAll homes are park-owned, purchased between 2016–2018 with metal roofs and Hardie sidingOwner pays water and sewer (aerobic septic); tenants pay electric and trashMaintenance handled by one individual for $400 per month using personal equipmentGravel road, well maintained; potential to add one or two additional homesMy Pro Forma:Vacancy: 5%Expenses: approximately 40% of effective gross income (includes water, insurance, taxes, maintenance, mowing, etc.)Estimated NOI: $37,800Financing assumption: $255,000 loan at 8% interest, 25-year termAnnual debt service: approximately $23,574Projected cash flow: about $14,250 annually ($1,188 per month)Cap rate: approximately 9.6%Cash-on-cash return: around 10% on $140,000 downDSCR: 1.6 (strong coverage)If the price can be negotiated to the $360,000–$370,000 range, the cash-on-cash return improves to roughly 11–12%.Pros:Consistent, well-maintained units with matching exteriors.

When you’re buying a full rowhome, gutting it, installing new framing, changing the layout, adding bathrooms, replacing windows, running brand-new plumbing and electrical, new roof, dry-locking the basement, etc.

At the time of purchase, 1 unit was vacant and 3 units were occupied by long term tenants.Renovations:  We did a new roof and electrical upgrade for entire property.

You paid extra for less cash flow, even if the long-term CapEx benefits were obvious.But when new construction trades at a discount — and comes with a 10-year roof, new mechanicals, energy efficiency, and a builder warranty — the math changes.Lower maintenance, lower vacancy, and predictable CapEx are now being offered at resale pricing or better.That is a different equation than anything we saw in 2015–2023.What I’m seeing in Reno, NV• In 2021, new builds typically sold 12–15% above resales• Today, builders are offering $15K–$40K in incentives plus below-market financing• Several new homes now underwrite better than 1980s resales, even before factoring depreciationIf you only pull comps from the MLS, you won’t see these concessions because they aren’t reflected in list prices.

For an 8–12 unit in your area, pick a tight buy box and underwrite like a business: verify in‑place rent rolls, trailing expenses, and any deferred CapEx (roofs, plumbing, parking).

Before you swing a hammer, confirm clean title, redeemed taxes, code liens, and permit history; get utilities on and do a full safety check: roof, foundation, electrical, plumbing, HVAC, and sewer.