Great detail and comparisons. I also appreciate how you kept rent modest for the tenants and wasn't greedy. I think I would buy, remove old homes and replace with new used ones to reduce a lot of the maintenance on those older units. But overall I think you did a great job evaluating the property.
Thanks for sharing the numbers. Showing the mistakes you made early on helps me to to be aware of the issue that may pop up as I start investing. I have yet to find my first deal but I hope to within the next year. I'm still learning how to analyze deals and video's like this really help. Thanks.
Hey Coach -- really enjoying these deep dives with all the numbers. I would not have done this deal, because mobile homes are just a bit too scary for me...when it comes to my rentals, I appreciate "boring". ;-)
Boring is good for sure! I think mobile homes can work, but the newer ones are better. It's a small thing - but it's nice to have OVERHANGS from the roof. That water kills everything when it runs right down the side of structure.
Hey Coach love the videos and the blog-very interesting to me as we are trying to get into buying mobile homes on their own land as an investment-very helpful seeing the numbers. Thanks so much!
I probably would not have done the deal, mostly because even with high potential profit on rents I feel like the clientel would be challenging and not worth the hassle. Currently looking at land to develop my own park with pads where people bring their own trailers. Great info so far though!
Thanks for feedback. People who own their trailers are definitely a different clientele. Althoguh lately we have had pretty good luck finding good tenants for all our units.
I would have done the deal based solely based on its potential value and opportunity to grow its interest to area….. Love how you break how you financed the deal… I’m in the Anderson area …. And very new to mobile home investing … What kind of mobile home do find the most value to invest today. Year, condition, and open ability to move home? Thanks Rod
I do enjoy these videos where you analyze your past deal. They are very worthwhile for your viewers. I would not have done the deal, but only because I was always a reluctant landlord. I can deal with newer properties only. And even a newer home can have a rain/water intrusion issue if there's not an overhang over the front door.
This was a great video. Thank you. Suggestion - you should explain that the 2nd mortgage was an interest only mortgage (7% x 6350 = $444.50 per year / $37 per month) and that at some point it needs to be paid back in full because it's not amortizing (yes, it's mentioned later on. If I was just starting out, this would be a great learning experience. For more experienced investors, it might not be a large enough return for the amount of time spent.
Good point. I didn't talk as much about the 2nd mortgage. Yes, it was interest only. Since my payments did not pay down any principal, we had to save money in order to pay it all at once. I believe we had a 10 year time frame to do that. This lender was not a professional investor and they did several loans like this at same time. So, 7% on 100,000 for example, makes more of a difference for them.
I just found your channel and enjoyed the candid appraisal and business rationale. I'm a small investor and am rebuilding a small old mobile home for my use in Florida. I've gained a lot of experience on the weaknesses of those older homes and am wondering if in this day and age, you scrap those old mobiles and plat out the parcel for tiny homes which are purchased and maintained by the owners. There would be some costs with running electrical and water lines and pouring the pads but I've seen those go in very quickly out in the oil fields. I'm leaning towards renovating the house to a solid condition and increasing the number of leased units to live off of lot rents. The property would definitely look better too. Opinions?
We have a 43 park owned home mobile home park in Monroe Louisiana (plus 2 lot rents and 15 additional empty lots). If you know of someone who may be interested in buying?
@@Dadsalrightthere's a small park in Liberty City Texas. Actually it's two parks, the bigger one has about 30 trailers the second one down the road has 7. Very small East Texas Town with a great high school with a great football team. The owner is named Sarah camp. Her husband who ran the parks died a couple years ago. The parks have been let go. Sarah is to old to operate them. One tenant hasn't paid rent in over a year and still living there. The lot rent is 200 a month.
Hey Coach! Why didn't you use that adjoining empty lot at all? Maybe a few more rented lots for mobile homes? Maybe improve with a newer doublewide or singlewide on foundation and sell off? I really appreciate the numbers analysis!
Hi Coach: I would not have bought this property knowing that older places always have large expenses and a lot of headaches! thanks for showing this info though.
The maintenance and capital expenses means the properties are worth more for rental income or if you decide to sell. Obviously maintenance has to be kept up.
Thanks for sharing the info Chad - really good learning. I would not have bought the property (a) old with lots of potential repair issues and (b) low quality so likely trouble with tenants and collections.
Just curious why you never considered selling the homes to the tenants? Was it because the tenants were not interested in that option? Would have greatly reduced the maintenance costs I would think ? I’m analyzing a similar deal so curious about that from your perspective :)
good question. It might have been a better play to sell the mobile homes and just rent the lots. In my head i was thinking they were so old that it wouldn't be that in demand, but there's always some price where it make sense. I think the business model of owning and renting lots is fantastic.
@@CoachChadCarson also, I think I would have dropped (demo'ed) the older trailers and brought in some better (still cheap) models. I'm not sure which of the three counties you're in here, but Oconee has fairly lax mobile home laws, from my experience.
Wow it looks like a lousy investment! I'll keep doing what I'm doing. I will promise to quit being tempted by mobile home parks. I'm getting too old to worry about problems
Lesson: young inexperienced entrepreneurs should have an old gal like me at their elbow with real life structural and maintenance experience (including septic, Murphy's Law) and - to be fair - I need a guy like you with a nerdy command of the numbers.
Lol. You are right! We could have certainly benefited from some real life wisdom in this case. We needed you! And being that nerdy guy is what I'm here for😂
Very informative video. Personally, i wouldnt do the deal. Although your ROI was very good but to me its not enough income to make it worth it considering the repairs and daily headaches. I would like to get into purchasing a mobile home park. I want to own the land but not the mobile homes. Any advice?
W🙄w! Thanks Coach for your transparency about your investment experience with that property. Did you have any updated pictures of upgrades to the properties? What ever happened to "Bucket-man"?
I'll need to scrounge up some pictures and do an updated video some day. Thanks for asking. Bucket-man eventually had to move on. We had to remodel his unit so he found another place to live. He was a very nice guy (like to talk a lot!)
I’m glad he found somewhere eles to live. Those type of situation when a property comes with “Live in maintenance man.” With no running water for himself isn’t a great sign, or the fact he didn’t try to buy it himself would of been enough for me. I commend you for being what sounds like a very understanding new owner! I myself had once just built a (semi-legal) apartment in a garage @ a 12 room air bnb only to have the place sold all the sudden and literally had carpenters from the new owner all the sudden in my kitchen doing finish work while I was still there (sometimes asleep in the bedroom to be woken up to these guys) Anyway my point is I should of been at the table for the deal because as an electrician I was the one that brought the main house around to a legal & safe rental property in exchange for rent. But I do believe I had hit the job so hard and with so many things to do (10k worth of material alone) that I ended up with the short straw there. Hopefully i can find something like you guys found, I’m dying to add equity to something. I’ve started to map out remodeling the small condo I’m renting bc I want to add a ceiling fan and cut in some lights. I already did the bathroom fan with one of those Bluetooth ones that plays your music while you shower 👍Gotta have it! 🪛🪚💡
I wonder how this property would do if you removed the old mobile homes and advertised for lots for tiny homes, which seem to be a newer trend. It seems that owning the homes is not the best way to go; keep the rent about the lot rent, extra parking, etc.
I shared the property taxes in the section with the spreadsheet. But you're right - mobile home property taxes are lower per amount of rent than houses because their actual value is usually lower. So, that's a big positive. It was the maintenance - not the property taxes - that hurt our bottom line.
You own the bank, how much was your cash flow in a year If you haven't touched it? And if you don't own, also you have spends how much was your tax refund for your spends?
I'd want the note paid off fairly quickly (5 to 10 years) and/or get a big down payment on a mobile home. They can last longer but also can go down in value
Looks to me like most of the repairs could have been done by YOU . You could have saved a lot of money .Who owned the cool old Mustang car that was in the driveway for several years ? Wish you would have partnered with me , i have several rentals in that area and always have ' private money ' to lend . Got any deals ?I have about $150 K to invest .
The only repair I can do personally is tearing stuff up. Lol. I'm much better on the negotiation, finance, selling, etc so we just pay for all the repair work. Not sure which tenant had the Mustang. We probably should have called you on this deal. You may have done a better job than us:)
