First of all I am extremely grateful for the assistance I get from here. The knowledge and expertise I recieve has allowed me to move forward in investing in the MHP business with confidence.
I just met with an Accountant today just to get an overall idea of what he can do for me and the cost.
I was told that I can roll over my business bank statements so he can decipher what will be business related and not and do a monthly Profit and Loss statement. I am dealing with a small 20 lot MHP.
His price was $150, it seemed high to me. I was reffered to him through some friends I have made in the area that own a motel business and have been using him for years. Does these numbers seem off?
The water and sewage is paid by the park as most of you know it is quite the expense and I will look into passing that on to the tenants as quickly as possible. I have reviewed the water usage for the last 2 years and was actually able to pin point last year where the water spiked around for a month so I have requested for the seller to disclose what caused the problem and how the issue was rectified.
I am using the due dilegent book and I am doing everything by the numbers. It has opened me eyes up to think for outside of the business books. It helps me maintain my professionlism and get things done.
something that has caught my attention was while reviewing the tax returns for 2011 and again on 2012 was on there Schedule E (Form 1040)
2011 indicates that $46,900 in revenue and $40,862 in expenses netting only $6,038
2012 indicates that $51,120 in revenue and $46,152 in expenses netting only $4,968
would this be something to worry about?
The park is at full occupancy but the rent hasn’t been increased in 4 years.
the deductions that are included consist of (Rough Numbers averaging both years combined)
10k bank interest
10k utilities and garbage
I am looking at everything i have collected and going by the book and seeing if everything match up. Honestly the park is looking pretty sound I will incur more expenses I am sure then what is here as I plan to try to run it more professionally.
I am looking to possibly bring it up to market standards then relisting it at a 10% cap to later reinvest in a bigger park. I plan on using this as to get my foot in the door as I learn about the industry and grow more knowledgable. I can see how I can expand my knowledge on this intial investment but first and foremost I must insure it is a quality investment rather then a money pit that will sink my ship.
Free for all on any advice would be great.
I’d prefer eventually having someone as a mentor who I can turn to for guidance with questions and thoughts.
With knowledge is power, I seek to learn, and extract valuable information in order to grow.
I rather be taught how to fish rather then recieve a meal.