Bigger Pockets Podcast - Frank Rolfe

Great podcast with Frank on it for anyone interested in it.


Nice interview. I have to say that I think Frank underestimates the need for ongoing R&M/CapEx money. The broker told me that the banks estimate 50 to 100 bucks per lot per year and because they do this that is what can get financed. The fact that it actually costs more than this is “offset by appreciation” according to the broker speaking for the banker.

As Frank sort of said, I think one month ($400 per lot?) is better, but it’s not just in reserve, you have to spend it (and replenish this reserve) constantly just to keep up with regular wear and tear on the plumbing, roads, electric, etc.

When the recession comes, a lot of owners are going to find that the bank (at 5% interest on 75% of high market price) is profiting more than the owner (whose equity may be razor thin with a change in market dynamics).