Re: Potential Real estate deal - comments appreciated
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Spex,
Interesting read...deal sure looks solid on cash flow. Management issues might be the problem given the clientele. Are you adverse to Sect 8, seems they'd be the lesser of two evils vs transients, no?
Follow up to the "exit strategy" question.
Any chance of, or value in, subdividing? Thinking along the lines that the parts might be worth more than the whole, and a piece rather than the whole might possibly be more attractive to future buyers.
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the numbers look good on paper. But the management might be an issue. You have to remember the kind of clients your likely to be dealing with here.
how are the eviction laws where you live?
How do they apply to "motel"/moble homes compared to standard apartment/house rentals?
What are the local laws on abandonment? this might be more of an issue with mobile homes as they can be considered personal property.
I don't think any of these will be a big issue but I brought them up for discussion sake.
Looks like you have a good deal on your hands if you can get a reliable system for management. This could be one giant headache or a smooth + cash flow. Most likely somewhere inbetween.
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