Anybody has insight on south side of Fort Wayne?
There are quite a bit of MHP there but rent seems to be low around 200$.
I’m wondering if this is because it’s a high crime area. Single family house in the neighborhood seems to sell around 45-50K which is much lower than median home value in Fort Wayne.
Any input appreciated! Is it worth investing in that kind of neighborhood?
I run craigslist ads and getting 2-3 calls a day which surprised me as I thought people would rather buy single family home 45-50K than a mobile home.
C/D class investment will generally produce the highest returns/profits. Most “trailer parks” will be in that class of property. The crime rate is simply another factor to be considered and managed by the investor. The bigger questions is whether you have the skill set to manage that quality of tenant.
If you are up to the challenge you can eliminate the criminal element within the park and increase lot rents. This is often a element of taking over a existing community.
Thank you.
How do I increase lot rent to the market rate knowing the single family in the park perimeter is so cheap that the lot rent is about the same as single family home mortgages?
I would not be overly concerned about the comparable home prices. The vast majority of park residents will never be able to save to buy a home or qualify for a mortgage. In essence they are trapped due to their circumstances. You can easily raise lot rents gradually over a couple of years if it is a large difference from surrounding communities. If it is less than $50 I would do it in one increase assuming your state landlord tenant regulations allow it.
Do they qualify for FHA loan with 3% down? If so, the mortgage for 45k SFR would be the same as lot rent for mobile home.
How is lot rent assessed based on surrounding region? Is it a lower percentage, or advised to be the same by comparison?
With regards to crime, Trulia.com has a nice feature that provides a “heat-map” of area crime. Nice tool when you are looking to answer this type of question.
Lot rent on the north side is 280-300$
No no, what I wanted to know is the overall method to ascertain regular apartment and house rents in relationship to “market rate “ mobile home lot rents. Is there a mathematical formula or percentage applied to formulate what “market rate” lot rents would be anywhere in the USA?
I ask because when older mobile home parks are bought up, investors want to raise the lot rents to “market rate.” How is that rate figured out?