Converting small parks to lot rent only


#1

Does anyone have any ideas/experience with purchasing a small park and eventually converting it to lot rent only after operating it for a while. The homes could be sold on terms and help pay down/pay off the mortgage. It seems like it would be pretty hands off, especially if it was on city water and sewer. Oh and I am moving out of Florida to Greenville, SC this summer! Im coming for you Tony ha. I want to mainly focus on land home deals and maybe some small parks too. -Ben


#2

Ben We are sorta doing this with a small park. Approx 12 out of 55 homes are privately owned. Part of the problem is cash flow. The rentals help to pay the expenses. If you dont need the extra income then lot rent only is much cleaner and simpler. Despite the fact that we show several tenants that their monthly payments wont change much they still will not pull the trigger. Some people just have a rental mind set. Slowly but surely I think it will pick up steam. As more people in the park convert to ownership I think it will convince others they can too.


#3

I can now see why small parks are good for rentals because of the higher rental income. It would be a good idea to rent it for 10-15 years and pay if off and then sell the homes and have a nice hands off cash cow.