Posted by Ryan_MO on October 13, 2003 at 12:07:08:
YEP YEP guys, sorry. I am currently at school in Luxembourg this semester. Ive been trying to keep up with the boards but not too much time to be active at all.
Heres what happened with the 2nd park.
Original purchase price was $400k for 2 acres with 10 mobiles and one extra rented pad, all mobiles section 8. Appraisal for the bank came in low, so the seller, being desperate to get out of town agreed to a price drop down to $294,000 for only the land with the mobiles on it and the 1 pad.
We also have an option to purchase the empty acre sometime in the future by taking over his loan.
The loan we ended up getting was:
$194,000 @ 6.5% for 15 years, fixed for 5
Pmt - $1680.84/mo
Our NOI is currently $4,019/month and an EBT of $2,338.16 on this park until we raise all rents which are section 8.
Now the 1st small one we closed on has been a BIG learning experience, and I mean that as a complete understatement. We have had 1 tenant move out w/o telling us, 2 more in default, eviction notices served, 1 tenant payed by section 8 every month, 2 vacant mobiles, 1 of which is now occupied by an awesome tenant, and 2 paying tenants. We have yet to pay ourselves since we purchased it in July. We just haven’t been bringing in enough with 2 vacant trailers, and 2 non paying tenants to pay ourselves. By november, we should have full occupancy with quality tenants and 3-4 section 8 tenants so we should be able to pay ourselves. The previous landlord just didnt give a dam about this pllace and wasn’t strict AT ALL. really didn’t even have rules. It’s just taking awhile to turn it round.
Email me back if you wanna chat about the deals. Peace.