For filling vacant sites in a park with $290 lot rent and park owned home rent $650, would you go with the cash program, one of the programs that will finance the used homes for you, or something else?
And what would you budget per lot for your cash invested to use one of these programs to fill a lot?
Trying to limit amount of cash that will get sucked up to fill the vacant lots.
Thank you
It depends on your market. In my market I would first concentrate on selling off all the POHs. This will give you a good idea of your market and off load your expenses and responsibilities. I would not use a program to buy homes. Once all my POHs were sold off I would purchase a home myself bring it in and sell it with the buyer taking full responsibility for financing.
Rinse and repeat until all lots are full. This approach will generally improve the quality of your tenant base by getting rid of all those renting homes. Home owners will have a higher degree of pride of ownership assuming you are selective in choosing your buyers. Present renters will likely not be a good choice. This will make your community more attractive to new home buyers assuming you strictly enforce high standards in your community rules. Once you have achieved this goal selling new homes is much easier.
All decisions should be made with the goal of maintain high standards to attract quality home buyers.
POH? TF is a POH? POH???
Well whiskey tango foxtrot I’d be happy to answer. POH is a Park Owned Home (POH). This means the park owns it and usually rents it or has it on a seller carry type of arrangement.
I hope this helps you FTW!
poh park owned home as opposed to
toh tenant owned homes.
i am curious what programs you are talking about. That will somewhat guide your “money in” per lot. As greg said, it all depends on your market. To me, It doesn’t make sense to put 10,000 into a home to place on a lot based on your rent. I would have to look at “life expectancy” of the home and cap rate on it. If your park is an A or B, then it might make sense. The tradeoff witgh POH is residents have no skin in the game and no reason to take care of your property. Tenants can do a lot of damage in one month.
I’m not aware of any programs for financing here. I limit my poh, since the value of the homes is generally ignored when financing a park. for this reason, many park buyers do not usually want that.
I buy used homes and move them in, fix them and sell with the intention of getting my funds invested up front and the rest i will work out payments if they qualify.
I think mobile home financing is tough to find unless they are newer.
Let us know what you decide.