Recently I bought this trailor park and problems are arousing weekly which doesn’t surprise me, but my property manager is starting to annoy me. I’ve been setting up a bank account in the county where the real estate is being held and it has been very cumbersome. My property manager and owner that sold me the property has been emailing me non-stop with gas leaks, dead cable lines, broken AC window units, and needed new flooring in trailors. I don’t like to think of myself as a slum-lord, but I feel most of these problems can be fixed by the tenants and the gas company. Isn’t the gas company suppose to fix gas leaks. It sounds like a problem they need to fix. If the cable doesn’t work or the connection is messed up you don’t fix it the cable guy comes out and since you are paying for it they check it out. I guess in Tennessee everything is the owners problem? I think not. So far I’ve bought a new AC unit, 100 YDs of flooring, and about to have to pay for a gas guy to repair what is sounds like major gas leaks. Personally I’m starting to think my property manager is doing a shitty job and I’m about to fire him because he should be getting the companies to fix their own equipment connected to my trailors. He is doing a great job at telling me all this and I know I need to have the money ready to fund all his property management duties, but is this good property management?
I have another property manager in Virginia that has it much easier because she only needs to deal with one tenant in single family residence, but she always comes up with solutions not to fix the problems. I actually like her style much more. Her downsides are communication. She does not email me. Email is my #1 form of communication and she rarely replies to anything I write her and does not provide a more personally daily checked email. What fascinates me is that she is a real estate agent just like this other property manager and doesn’t search for other properties in the area for me to buy when I’d be giving her the commission.
The positives about the property manager is Tennessee is that he will respond daily by email. Now he might misspell almost 1 word in every sentence he writes, but even I have grammar problems. He kind of writes how he talks in his very westernly-southern accent and it almost worries me. Should I be worried? Is he a person really to trust? Do I really need a property manager who is very educated to run my park successfully? I think the answer is no to most of these answers. So for the most part I trust hes going to get me tenants in and I hope he is going to search for additional trailors to fill the lot. I’ve already went online at OnedollarSigns.com, which offer very affordable mini-billboards signs for effective marketing I feel that will get all my trailors fully rented again. I’m working on getting 6 month leases as a minimum for secured rent. If I can get 10 units rented at $450/month then that is $4500/month cash flow and after expenses I’d net around $3000. So as long as my current property manager puts all my signs along my road frontage and maybe some others near by to collect interest, he fixes the gas leaks, and gets the flooring in to rent the trailor then I’ll be happy even if it costs me a bit more then I want in repairs.
So what is good property management? It could be the way you like to run your properties and that reflecting in your property management. For me I like a property manager that knows what is needed and not necessary. I think it is also what kind of property you are renting. I am renting a “full-service trailor park”. So I am expected to pay all the bills and more, but how much more? I get the feeling my tenants are going to try to find problems so I keep telling my property manager to only cover what we have to or we raise the rent. What are your thoughts?
Lastly, I have received all the Deed of Trust and promissary note on the property and will complete the deal this week.
Well all I’ve got to say to yaw financial blog readers out there ya hear is that my good old trailor park will be a success becomes I’m going to make it one. I’m a proud trailor park owner. Below is a picture of some of my lots of trailors I own that will generate my future retirement with the right plans to help people and help myself. (Click to enlarge picture)
I’m currently collecting enough cashflow to pay my mortgage, property manager, and all utilities.
What I feel I need to do as a landlord and real estate investor is to sell off my trailors as “home ownership” to the tenants to create long-term tenants that will fix up their own trailors over the time they own it and receive a small tax break on their taxes for interest they paid on their mortgage note. Then I’d receive longer-term tenants leasing the land the trailor is own. If they defaulted on their loan I’d foreclose on them and take back the trailor since I’m the bank.
I’d inflate the prices on the trailors I sell on my land to create low enough payments to be more affordable then they are currently renting them for to create an incentive to buy the home they are in. I’d still pay all utilities (water, gas, electricity, cable) as a full service trailor/rv park, but I would not have to pay for upgrading and repairing the trailors saving me a lot of money. I’d also be able to sell my mortgage notes at a discount to investors to earn back my initial investment of $10,000 and possibly a lot more. My goal is to buy 4 more trailors on the 4 empty lots and sell all 10 for at least $10-15k each collecting my mortgage note cashflow plus my land rent of around $200 a lot. If I could pull this task off with my property manager cooperating and on his game I should be able to pull off around a $3,500 net cashflow.
As easy as it sounds it is not in the least. I do understand great costs will be ahead. I am already redoing the flooring in a couple of trailors and some cosmetics to sell them. I’m also paying for better upkeep of the land they are on for better curb or should I say trailor appeal.
I’m hooking up a coin operated dryer and washer to increase my income. I know the tenants will use them and I’m actually considering building a mini-laundry mat on my property because its a major road and there aren’t any near by. I figure if I invested in at least 5 of each washer and dryer and charged $2.00 a load it could be worth building a small structure just for having people come, park, and wash their clothes, plus having my own tenants using them.
I took out a loan and I’m trying to use the least of it as possible. Unless buying more trailors I don’t want to invest anymore then $20,000 into the property because I want to pay back my loan before the payments are due. At the same time I need to create a master plan to make this trailor park a success in a rather small town in no-where Tennessee. There is a lot of traffic daily near my piece of land and many apartments are near it so a small laundry mat could possibly be a good idea to own. Have any thoughts?