The CASH program does not work in all markets – 21st Mortgage will be the first to tell you that. You need to have high home prices and apartment rents. You are looking at new homes costing, including lot rent, in the $700s to $800s per month in the northern markets. The sale there is not only based on price, but on the benefits of a mobile home over an apartment (such as having a yard and privacy). In some markets, the CASH home will only be $200 or so less than a similar apartment, but the customer is attracted by the fact that they can own it, that it’s new, that it has no neighbors banging on the roof or walls, that they have a yard, and that they can park by their front door. In addition, they are attracted by a great school district (super important in most markets) and competitive pricing that precludes them from living in that desirable area in any other way.
While the TRU product is the cheapest, you need to buy a home that is in-line with your potential customer’s demands. In our northern markets, our customers are much more affluent and demanding, and they’re willing to pay for an upgraded home.
The total cost of the home, transport, set, skirting, stairs, A/C, is easily in the $35,000+ threshold even in Texas where the homes sit on dirt and are only a short distance from the factory. But if you’re in a good market, that works fine all day long.
The CASH program will not work if you do not have 1) decent tenants with cash for a down payment and a steady job 2) a desirable location 3) high SF home prices and apartment rents 4) a manager who has decent people/sales skills and 5) a test ad that pulls at least 30+ calls in a 10 day run. If your park has these qualities, then CASH is a good test of the market. If it works, you get more homes and if it fails then at least you tried and know the truth.
If you are selling only on price, it will never work. Customers who buy on price only will never pass the credit requirement. You are not selling $500 1970’s used cars here, but new cars that demand a more affluent buyer.