How do you determine what you can charge?

[alexmorrow]

I looked at a mobile home park today in northern Colorado and I'm really not sure what I can charge because there are no other investors in the park. How do you determine what you can charge on top of the space rent?

[Jim Johnson]

I looked at a mobile home park today in northern Colorado and I'm really not sure what I can charge because there are no other investors in the park. How do you determine what you can charge on top of the space rent?

look at what a apartment will rent for near the park... say it is 750 for a 3 bed 2 bath. So space rent is $300 + $400 for a payment is a good guess for a 3/2 mobile home in a nice park. Remember to let your seller know they will have a tax deduction with the mobile home as you will 1098 them on the interest they pay.
Then just add and subtract for bedrooms and baths...
double wide might be $500 a month
2 bed 2 bath is 275
2 bed 1 bath is 250
3 bed 1 bath is 350

[alexmorrow]

So the total rent always should be a little less than what rent is going for in the apts nearby? Can you please explain this tax deduction a little more? 1098 them on the interest?

[Jim Johnson]

So the total rent always should be a little less than what rent is going for in the apts nearby? Can you please explain this tax deduction a little more? 1098 them on the interest?

interest on your primary residence can be used as a tax deduction. How much of it I do not know, good question for an accountant. As a lender charging interest if it is over $600 per year the IRS says you must give them a 1098... if caught not giving one there is a fine... and I would think maybe a audit flag... but who knows...

[alexmorrow]

Know any good real estate tax accountants?

[Jim Johnson]

Know any good real estate tax accountants?

this is a very subjective topic. You really need to determine your bias on tax law, look at the complexity of your business and personal taxes and find someone that best suites those needs. I use layers of accounting- bookkeeping through CPA and audit people... most investors would not need or desire that much involvement from an accountant...

[alexmorrow]

Well, I called up some surrounding apartment complexes near the mobile home park I am thinking about investing in. There's only one apartment complex in the same town as the mobile home park. I will find out there prices soon. I left a message with the apartment owner. One valuable resource to find out local rents around mobile home parks are real estate agents. I called them up last and they gave me a good idea of what rent is going for in the area for different apartment layouts.

Apartments rents in closest towns:
2/1 = $1,099 On average it's $700-$800
3/2 = $1,312 On average it's $1000+

Average town rent where mobile home park is in:

2/1 = $500
2/2 = $600
3/2 = $1000