This is really me asking what is the best improvements to make to a POH if you want to limit your repair / renovations to $2500. I own 27 POHs and am quickly coming to the belief that a new metal roof with adequate overhang for water run off and new windows is the best money I could spend to extend the life of these home. Water intrusion is by far the costliest threat to these homes. But from an ROI stand point I’m curious if other POH investors have found money spent in other ways a better return?
Best money is on the exterior of a home. Every dollar spent is a improvement to the value of the community. Windows, siding, skirting and landscaping.
My primary goals would be to increase the value of my community investment. Money spent on the home interior is limited to necessary repairs only and making the home sellable to future home owner. Interior wise any money spent that does not increase rent must be limited to repairs.
Owning 27 homes in a community, depending on total number of homes in the community, allows you the potential to change the entire appearance of a community. This should lead to a higher quality of resident. Selling the POHs will also increase quality of residents.
Assuming you have a competent park maintenance man… not a crackhead
Windows you should be able to replace window for $200 apiece. I have ordered fixed glass vinyl windows 16"x24" from Home Depot for as little as $37. This window was for a door. With most window I have seen being surface mounted install is less than an hour labor.
Paint with an airless paint sprayer should be a relatively quick two man job. Figure paint to be 50% of the cost. I have even used cans of spray paint to touch up older wind blasted white trailers.
Doors. Depending on if it’s a newer trailer with standard construction you should be able to buy a new exterior door for under $300. Plus labor
Roofing. Snow sealing might not add sellable value but as you stated water leaks wreck everything and are hard to track the true source of the leak. I have found metal roofs to be about twice the cost of 30 architectural shingles. Be careful on if you have your maintenance man do the roofing. Workman comp insurance can gets expensive.
Interior. Rugs (flooring) and paint. It will get rid of the “Smell” be it cat pee or just the previous tenant stink. Plus both can easily and quickly rehab a space. I would also replace any outdated light switches ($.50), plugs ($.50), covers ($.18) and light fixtures ($10). Counters, sinks, faucets can get expensive. Craigs list is a first source for appliances but always compare them to new low end Home Depot units. When you need an appliance quick, or can’t find what you need you can always pick up a new low end Home Depot $350 range or $600 refrigerator.
This all being said you must always ask yourself if the unit is worth rehabbing. If it is a 1970s unit with any structure issues the chances of being able to fix it up cost effectively and attract quality tenants will be challenge to say the least. At the park I work at, that we are turning around, we just had to make that call twice. It is hard bite the bullet of paying to haul off a trailer to the dump and then spend upwards of $25K for a newer trailer and then find a buyer with down payment and credit when you can rehab an older unit for $3-5K and rent to own over 18 months.
With limited funds, we focus on making sure it is mechanically sound. Water, heat, electricity have to work safely and there can be no roof, window, or plumbing leaks. For an older home, we can safely sell or rent it knowing that it is mechanically and functionally sound. Cosmetics are nice, but if the plumbing or roof leaks, you can’t sell or rent the home.