I picked up a park (75 pads) last year and it is inside of a major metro of 1mill, so close to the downtown that I can see the high rises from the main street. The rents are $700-$900 for lot and home and I own all the homes. Lot rent is about $500. The catch is that the renters are “low income” due to the although I require they earn three times the rent.
I am hesitant to switch to lot rent only because I do not have $350/month in work orders. Also the homes I am rennovaring are absorbing $5-$8k per turn with labor and will be solid for years. I worry they won’t be well maintained. Also from a valuation standpoint at refi or sale lot valuation will control and will be estimated anyway.
Aside from the additional management is there a case for lot rent only in this situation?