http://www.mobilehomeparkforum.com/list.php?3Mon, 06 Sep 2010 10:10:32 -0700 Phorum 5.2.9a http://www.mobilehomeparkforum.com/read.php?3,3950,3950#msg-3950 http://www.mobilehomeparkforum.com/read.php?3,3950,3950#msg-3950
This park is located in the western part of Oklahoma, tornado alley. God forbid, what expenses would incur for me if a tornado would hit the park? Of course, if I owned some of the homes, these homes would be covered, but other issues that I might come across that I cannot think of. Any idea, anyone?

Everyone in this forum are so positive, I hate bringing up negative thoughts.]]> Alex4U Mobile Home & Mobile Home Park InvestingMon, 06 Sep 2010 05:17:51 -0700 http://www.mobilehomeparkforum.com/read.php?3,3920,3949#msg-3949 http://www.mobilehomeparkforum.com/read.php?3,3920,3949#msg-3949 steveg49 Mobile Home & Mobile Home Park InvestingSun, 05 Sep 2010 21:06:43 -0700 http://www.mobilehomeparkforum.com/read.php?3,3936,3948#msg-3948 http://www.mobilehomeparkforum.com/read.php?3,3936,3948#msg-3948 mroady Mobile Home & Mobile Home Park InvestingSun, 05 Sep 2010 20:01:56 -0700 http://www.mobilehomeparkforum.com/read.php?3,3920,3947#msg-3947 http://www.mobilehomeparkforum.com/read.php?3,3920,3947#msg-3947 shawnsisco Mobile Home & Mobile Home Park InvestingSun, 05 Sep 2010 19:04:42 -0700 http://www.mobilehomeparkforum.com/read.php?3,3920,3946#msg-3946 http://www.mobilehomeparkforum.com/read.php?3,3920,3946#msg-3946
I can't tell you how many people I know who of who didn't even try (or try too hard) to sell their properties when the economy tanked. They stopped paying, lived free in the house and waited out the foreclosure process .... then off they went.

I saw the same thing happen with easy bankruptcy filings a decade ago..."everyone was doing it, so why not me"...really made me sick when I saw some of these things come across my desk...the attorneys who filed these things on behalf of their clients should have been disbarred.]]> DawnA Mobile Home & Mobile Home Park InvestingSun, 05 Sep 2010 13:25:55 -0700 http://www.mobilehomeparkforum.com/read.php?3,3936,3945#msg-3945 http://www.mobilehomeparkforum.com/read.php?3,3936,3945#msg-3945
I think it's always more effective to keep a customer than to find new ones


My thoughts on rent increases in a park that is already showing a profit is that you should think of it in terms of boiling a frog....a frog put in water that gradually increases in temp doesn't notice and stays in the pot.

If the park isn't cash flowing...whole nuther situation....but if there is much to be said about setting out a plan to increase rents over time without losing any tenants

I would start by making rents for similar lots equitable...sounds like there is some room there to increase cash flow immediately and who can argue with that? well, MHP tenants, could, but I don't think they'd have a leg to stand on in a court

then as Rolf said, phase in increases to get closer to market rents each year]]> DawnA Mobile Home & Mobile Home Park InvestingSun, 05 Sep 2010 13:15:02 -0700 http://www.mobilehomeparkforum.com/read.php?3,3934,3944#msg-3944 http://www.mobilehomeparkforum.com/read.php?3,3934,3944#msg-3944

But there is a cost to the operator in electricity and chlorine and wear and tear on equipment...but my long term issue is the cost of treating waste water...we show a very high per unit usage which, when it comes time to rebuild the waste water system this year, I will be building to accomodate actual usage...not legitimate usage.....alot of the waste water that I treat is just that....wasted water


I posted a thread where I was considering installing water wise apliances in all the homes that I resell, I've even considered giving credit to tenants for doing the same,]]> DawnA Mobile Home & Mobile Home Park InvestingSun, 05 Sep 2010 12:53:29 -0700 http://www.mobilehomeparkforum.com/read.php?3,3934,3943#msg-3943 http://www.mobilehomeparkforum.com/read.php?3,3934,3943#msg-3943
My thought is that this might save on the sewer system as much as anything. Volume of water seems to be the biggest hindrance to these systems and after reading how much water is wasted, I thought perhaps this would help to preserve the sewer system.]]> ChrisL Mobile Home & Mobile Home Park InvestingSun, 05 Sep 2010 05:53:38 -0700 http://www.mobilehomeparkforum.com/read.php?3,3934,3942#msg-3942 http://www.mobilehomeparkforum.com/read.php?3,3934,3942#msg-3942
The first place to start in sub-metering utilities is with your state's laws on it. You should research that on the internet or by calling the appropriate department at the state. You should also contact your state's manufactured housing association for their input.

Sub-metering a private utility may cause problems. In most states, you cannot bill more for water than you actually pay. You cannot bill the theoretical value of the water that your well produces, so the actually billed amount would be very small -- it probably won't support the cost to install the meters and read and bill them.

But the starting point is the law, and what it allows. After that, it's simple mathematics.]]> Frank Mobile Home & Mobile Home Park InvestingSat, 04 Sep 2010 09:22:19 -0700 http://www.mobilehomeparkforum.com/read.php?3,3936,3941#msg-3941 http://www.mobilehomeparkforum.com/read.php?3,3936,3941#msg-3941
Rolf
Wheat Hill]]> Rolf Mobile Home & Mobile Home Park InvestingFri, 03 Sep 2010 18:11:47 -0700 http://www.mobilehomeparkforum.com/read.php?3,3934,3940#msg-3940 http://www.mobilehomeparkforum.com/read.php?3,3934,3940#msg-3940 DrewReno Mobile Home & Mobile Home Park InvestingFri, 03 Sep 2010 13:05:54 -0700 http://www.mobilehomeparkforum.com/read.php?3,3934,3939#msg-3939 http://www.mobilehomeparkforum.com/read.php?3,3934,3939#msg-3939 ChrisL Mobile Home & Mobile Home Park InvestingFri, 03 Sep 2010 06:24:50 -0700 http://www.mobilehomeparkforum.com/read.php?3,3936,3938#msg-3938 http://www.mobilehomeparkforum.com/read.php?3,3936,3938#msg-3938
Thanks for the feedback. It is excellent as always. I have 78 spaces and 19 are vacant. You are correct. I would have to lose a lot of tenants to dip below where I am now. However, if I raise the rent form $180 to $275, that is a $95 increase which is huge. The hard part is that the previous owner did not raise rents for over 10 years in some cases. The residents can move into another park but they will have to pay more than $325 plus moving costs.]]> mroady Mobile Home & Mobile Home Park InvestingThu, 02 Sep 2010 21:59:37 -0700 http://www.mobilehomeparkforum.com/read.php?3,3936,3937#msg-3937 http://www.mobilehomeparkforum.com/read.php?3,3936,3937#msg-3937
I would do the same thing I did in Grapevine -- I'd send them a letter telling them what every other park charges and raise the rent to slightly below market, so they look like they're still getting a deal.

Here's the economics of this. It's pretty cold, but it's not different than the military calculating the "collateral damage" to civilians of a military strike. If you raise the rent up an average of $50 per lot, and you've got 50 lots (I'm just guessing as you did not say how many you have), then you are going to pick up $2,500 per month in straight profit. You would have to lose 10 tenants (or 20%) to make this a wash. If fewer than 10 leave, then you're ahead. However, you have also picked up savings in water, sewer, trash, etc. by having those 10 leave. So the real breakeven is probably more like 12 to 14.

Will 10 or more leave? If there's no where else to go, probably not. Would 5 leave? I don't know, but you'd still be ahead if they did.]]> Frank Mobile Home & Mobile Home Park InvestingThu, 02 Sep 2010 21:04:58 -0700 http://www.mobilehomeparkforum.com/read.php?3,3936,3936#msg-3936 http://www.mobilehomeparkforum.com/read.php?3,3936,3936#msg-3936 mroady Mobile Home & Mobile Home Park InvestingThu, 02 Sep 2010 19:12:36 -0700 http://www.mobilehomeparkforum.com/read.php?3,3757,3935#msg-3935 http://www.mobilehomeparkforum.com/read.php?3,3757,3935#msg-3935 shawnsisco Mobile Home & Mobile Home Park InvestingThu, 02 Sep 2010 06:55:39 -0700 http://www.mobilehomeparkforum.com/read.php?3,3934,3934#msg-3934 http://www.mobilehomeparkforum.com/read.php?3,3934,3934#msg-3934 ChrisL Mobile Home & Mobile Home Park InvestingThu, 02 Sep 2010 05:10:57 -0700 http://www.mobilehomeparkforum.com/read.php?3,3757,3933#msg-3933 http://www.mobilehomeparkforum.com/read.php?3,3757,3933#msg-3933 Jim_Johnson Mobile Home & Mobile Home Park InvestingWed, 01 Sep 2010 21:38:03 -0700 http://www.mobilehomeparkforum.com/read.php?3,3817,3932#msg-3932 http://www.mobilehomeparkforum.com/read.php?3,3817,3932#msg-3932 Jim_Johnson Mobile Home & Mobile Home Park InvestingWed, 01 Sep 2010 21:36:03 -0700 http://www.mobilehomeparkforum.com/read.php?3,3817,3931#msg-3931 http://www.mobilehomeparkforum.com/read.php?3,3817,3931#msg-3931 remerson1 Mobile Home & Mobile Home Park InvestingWed, 01 Sep 2010 17:43:45 -0700 http://www.mobilehomeparkforum.com/read.php?3,3757,3930#msg-3930 http://www.mobilehomeparkforum.com/read.php?3,3757,3930#msg-3930 Frank Mobile Home & Mobile Home Park InvestingWed, 01 Sep 2010 15:42:18 -0700 http://www.mobilehomeparkforum.com/read.php?3,3757,3929#msg-3929 http://www.mobilehomeparkforum.com/read.php?3,3757,3929#msg-3929
Karie Martin

Mobile Insurance Agency

25775 Oak Ridge Dr Ste 110

The Woodlands, TX 77380

800-458-4320 ext 20

281-292-7429 fax

Member of the American Insurance Alliance]]> Mike Mobile Home & Mobile Home Park InvestingWed, 01 Sep 2010 15:28:20 -0700 http://www.mobilehomeparkforum.com/read.php?3,3920,3928#msg-3928 http://www.mobilehomeparkforum.com/read.php?3,3920,3928#msg-3928 steveg49 Mobile Home & Mobile Home Park InvestingWed, 01 Sep 2010 10:15:57 -0700 http://www.mobilehomeparkforum.com/read.php?3,3920,3927#msg-3927 http://www.mobilehomeparkforum.com/read.php?3,3920,3927#msg-3927
People will play the way you pay them to play.]]> shawnsisco Mobile Home & Mobile Home Park InvestingWed, 01 Sep 2010 02:58:50 -0700 http://www.mobilehomeparkforum.com/read.php?3,3920,3926#msg-3926 http://www.mobilehomeparkforum.com/read.php?3,3920,3926#msg-3926 steveg49 Mobile Home & Mobile Home Park InvestingTue, 31 Aug 2010 21:06:38 -0700 http://www.mobilehomeparkforum.com/read.php?3,3695,3925#msg-3925 http://www.mobilehomeparkforum.com/read.php?3,3695,3925#msg-3925 Frank Mobile Home & Mobile Home Park InvestingTue, 31 Aug 2010 08:10:29 -0700 http://www.mobilehomeparkforum.com/read.php?3,3695,3924#msg-3924 http://www.mobilehomeparkforum.com/read.php?3,3695,3924#msg-3924
I have three deals similar to this one (seller financing, mom and pop, not quite motivated enough) where I'm staying in contact with the owners. I think these kind of sweetheart deals can one day come to fruition if we just keep in contact. It seems like the right way to do business by not only looking to get a great deal from mom and pop, but to actually take an interest in them and build a relationship. And when they do get serious about selling, who are they going to talk with first? Yep, me.

Has anyone else taken the "slow buy" approach, especially when it comes to seller financing?]]> Rob_Mosher Mobile Home & Mobile Home Park InvestingTue, 31 Aug 2010 07:05:11 -0700 http://www.mobilehomeparkforum.com/read.php?3,3695,3923#msg-3923 http://www.mobilehomeparkforum.com/read.php?3,3695,3923#msg-3923
NET OPERATING INCOME $34,056

10 cap: $340,056

CAP RATE 10.01%
CASH ON CASH 11.61%
DEBT COVERAGE 1.41
GRM 4.09

PRICE PER PAD 6801

So Rob what did you do with this property?]]> Mike Mobile Home & Mobile Home Park InvestingMon, 30 Aug 2010 16:04:14 -0700 http://www.mobilehomeparkforum.com/read.php?3,3891,3922#msg-3922 http://www.mobilehomeparkforum.com/read.php?3,3891,3922#msg-3922Mike and frank do have valid points. BUT I need more info before throwing this one away. First the price, yup it's way way overpriced! What size, condition, shape, year is the home that is there now? 6 homes on .3 acres is a density of 20 homes per acre (the norm is 8) I doubt you can get 5 more decent sized homes in there. If the home is newer than a 1990 and is a large single you may be able to buy it and sell it as a home on land. Buy it for say $5000-$8000 cash and sell it with financing for $22,000-$25000. now you have a deal that is a money maker. Frank and others on this board do not advise buying small parks and L/H's and are totally against "Lonnie Deals" as a business model. But not all of us have the money for the down payment on a large property nor do we want to own outside of our geographical area. Small parks in your area, self managed can be great money makers with more oportunities for owner financing, way better cap rates and easier exit strategies (sell some keep some) Would I rather own one 60 lot park instead of 3, 20 lot parks? Sure! But 3, 20 lot parks within 50 miles of my house bought at 12-14 cap using the snowball method (buy one improve it, cash out, buy another etc) that I can manage while still punching a clock down at the factory will make me great money! IMHO]]> Northeasterner Mobile Home & Mobile Home Park InvestingMon, 30 Aug 2010 09:44:16 -0700 http://www.mobilehomeparkforum.com/read.php?3,3920,3921#msg-3921 http://www.mobilehomeparkforum.com/read.php?3,3920,3921#msg-3921
Just about every speculative bubble in modern history is just a repeat of the same thing from earlier generations. The moral: people are too greedy for their own good, and always think they can get out before things tank when, in reality, nobody can accurately predict when they'll tank and, once they do, it's impossible to unload that asset. If I put a wild bear in a burlap bag and carry it around, I can't really predict when it will rip its way out and, once it is apparent it's ripping its way out, nobody is going to buy that bear-in-a-bag from me -- so basically I'm going to get killed.]]> Frank Mobile Home & Mobile Home Park InvestingMon, 30 Aug 2010 09:28:40 -0700