I own a park in Southern Minnesota and I am currently applying for my dealers license to work with the Cash Program. What mobile home makes/models, box size, beds/baths are park owners in and around this area finding are working the best? Currently, I have on my list to call Legacy, Champion, Clayton Pulse Model out of Wakarusa Plant, and TRU MH but I believe the closest factory is 900 miles away in Northern Alabama. Anyone shipping TRU Homes up this far?
My lot rent is $290 and I would like to keep total cost to tenant around $700 per month so I am looking at lower end homes for my market, nothing fancy.
“What mobile home makes/models, box size, beds/baths are park owners in and around this area finding are working the best?”
Jason, we are not in your area. We are in the Southeast (South Carolina).
However, in terms of Mobile Homes we like:
Singlewides (Largest possible for us - 16’ x 80’)
3 Bedroom
2 Bathrooms
Verify Your HUD Code Building Requirements For Your Area (does MN need a specific “Snow Load” or “Roof Load”?..the SC coast needs a specific “Wind Zone”)
NO Dishwashers
Recently, I read an article concerning the Mobile Home Manufacturers reducing their prices in order to stay competitive.
In order to reduce their prices they started using “cheaper” produces.
Thus, even if you are selling, you might want to upgrade some non-aesthetic options such as ( as per: How to Choose the Best Upgrades for Manufactured Homes ):
1.) Roof Pitch: Snow regions = higher roof pitch
2.) Insulation: Yes, you will not be paying the heating bill. However, your Tenants will not stay if their heating bill is too high.
3.) Sub-Floor: Consider upgrading “to at least 5/8 inch thickness. If possible, insist on waterproof glue and screws instead of staples.”
By upgrading some non-aesthetic options (especially Sub-Floor) you can help make your “Buyers” happy and help avoid added costs if you get these homes back in the future and need to renovate them.
Jason,
Not sure the distance to your park but you may want to look also at MidCountry homes in Dorchester, WI. They were recently acquired by Commodore. We saw their homes at the Louisville show and by far they in our top 2 in terms of quality.
Thank you. How were they priced compared to others? I think my customers are not too discriminating and looking for something that is low level price wise. I also saw on their website they do not service the Minnesota market for some reason.
“Have you ordered any TRU Homes and if so what were your thoughts on them?”
No, we have not ordered any TRU Homes.
In fact we have not ordered any New MHs.
We have purchased multiple, newer MHs but have not gone the New MH route as of yet.
Also, I am a bit conservative so we have not tried the CASH Program route. We desire to hold the MHP for the long-term…however, life happens. Thus, I am concerned about the ramifications of selling a MHP with CASH MHs.
Please let us know how your CASH Program MHs do in your MHP.
“but do you mind if I ask why you specifically don’t want dishwashers in your new homes?”
We have not purchased New MHs as of yet.
However, we have purchased relatively, newer MHs with Dishwashers. We have not taken out the Dishwashers in 2 of the MHs. However, we have had issues with both of them (one was fixed and one was not fixed).
Going forward we will specifically take out the Dishwashers in existing MHs (before renting) and not add Dishwashers to new MHs.
Like everything Dishwashers break.
We buy new Refrigerators and new Ranges. People need these to live.
However, sometimes it is nice to be proactive to not have something that could (and will) break.
In addition when we purchase “newer” used MHs we will give away Washing Machines and Dryers to other Tenants for “Free” “As Is”.
Anything you give to a Tenant (even as a bonus) is “expected” to be fixed when it is broken.
If the item is not in the home, the Tenant should not have an issue.
The article you posted a link to was accurate - to a point, but did not address those areas of a home that someone financing a home should upgrade because some of those homes will come back and if certain items are not upgraded when built will result in too high refurbishing costs.
One of the mistakes dealt with bathroom floors. Yes, the thickness needs to be upgraded as the article pointed out, but the material itself needs to be changed. We spec marine grade plywood in ours, but that might be more than most would do. I’m pretty belt and suspenders in my approach. There are about 12 other things our clients insist on because they are providing the financing through their captive or related finance company.
The goal is to keep the cost of refurb after repo to under $2K.
If they are using the CASH program they are lending even if 21st is the lender of record and is getting all the profits from lending. They need to think about what happens if the home comes back.
You end up pulling the trigger on any MidCountry homes? I also own properties in MN and can get a 16x80 all-in including freight for $35.6k w/ MidCountry vs $33.6k for a Pulse coming from Wakarusa. I’ve been very hesitant thus far to pull the trigger on any CASH homes. Sounds like for $2k delta it’s a no brainer to go with MidCountry. Shipping delta was $5.3k from IN vs $2.1k from WI. Curious to hear any others’ thoughts.
We have not acquired yet as our park has not closed yet. However, we visited the factory 2 weeks ago and liked the quality of the build. Little items make a big deal such as all drywall (no VSG), solid dovetail cabinets, std home doors, etc. To us, there was no comparison, especially with the lower shipping costs. You get much more for the price.