I am looking to find some cash-flow poperties in non-declining markets. Do you guys have any advice on where to look and what types of properties to look for?
So far I have been looking at multi-family properties in Tennessee, Missouri, and a couple of other areas in the south. I like that area because it seems to have a little future growth compared to other parts of the midwest and the rust belt area.
Ideally I would like to find something in the west (California, Oregon, Washinton, Idaho, Utah, New Mexico, Colorado) since that is closer to home. But, the south seems to be better for cash flow.
Mobile home parks seem to have some decent cash flow, but I do not have any experience with them. Is that something worth looking in to?
Any other ideas?
I am looking in the $1M and less price range. Any input would be greatly appreciated!
Mobile home parks are great investments. People just want to stereotype everyone that lives in them. Who cares. Warren Buffett is the largest owner of trailer parks in the US. So you would be in excellent company as a trailer park owner.
Some of the national investors I work with are looking at Texas, Utah, New Orleans, Louisiana, Upstate New York, and Boise Idaho.
*Keep in mind some states have higher tax rates when doing your calculations.
Depending on what you’re trying to achieve, it may be easier to get a larger loan than it is to get a small loan. Lenders tend to prefer to write large loans because they make more for the same amount of work. The point I’m making is don’t necessarily limit yourself to $1M and under. If you’re worried about down payments, there are creative ways of minimizing the out of pocket money.
I would like to suggest Mobile Home Parks on the Eastern Shore of Virginia. They all have been under-valued by about $100 per month per lot. Especially with all of the Condos and Subdivisions going up in the area. Courts Systems here are also LandLord Friendly.
If you are worried about not knowing enough about it you can always do a search on Google for “The Property Manager’s Survival Guide” by Me, it has all of the information needed to Manage a Mobile Home Park.
I have good credit but no experience and absolutely do not have $2.4 million for down payment.
However I have good enough sense to know a good deal when I see one.
On a 160 unit apt buildg in a strong rental area.
Asking price: $12 million
Effective Gross Income $1,688,974
Other Income 34,760
Less: Expenses 860,616
Net Operating Income $828,358
Net Cash Flow Before Debt Service $828,358
Debt Service 638,662
Net Cash Flow After Debt Service 8.3% $189,696
Principal Reduction 117,322
Total Return 13.5% $307,018
This place was built about 4 years ago and is a prime building for simple condo conversion.
Average condo prices in the area are $95K in a down market!
This looks like a great opportunity to me.
My question is how can I get this financed??? Partnered???