I have been prepping the groundwork to bring in new homes in a park we bought a year ago. Clearing out old dead trees, stumps, evicting the riff raff, drug dealers are gone, etc. As long as the park ground are beautiful and the older homes are also kept in a “new like” state cosmetically - will it be an issue trying to sell new 2018 16X80’s on the luxury end of the scale? The demographics of the area support the price point of the homes I plan to sell ($35-$40K for a 16X80 singlewide). I just don’t if older homes cause a perception problem. Currently there are maybe 12 vinyl/pitched-roof homes out of 70 in the park, plus 2 more flat/round-top roofed homes which owners re-did in vinyl. The remaining are metal on metal or wood siding. Due to my painting campaign all the metal-metal homes will have new quality paint jobs with shutters & new skirting by spring.
I think you may be surprised to end up 50% more than you expected on your price point, once you factor in moving and installation and hookup and stairs/decks and skirting and all the other things that go with.
About 5 years ago we brought in new homes to a less desirable park and we had a very tough time selling them. Now that they are moderately used we are getting better luck selling them. Is this a factor to consider, or is it just the economy?
No that figure is all-in. Whatever price I say “$XYZ” I mean after all moving expenses etc. I’m not going to try to sell $60K homes here (though maybe I should if the cheaper ones move). All variables including park condition, neighborhood, lot size and layout, landscaping and economics are fantastic (landscaping because I made it that way and I’m continuing). I am only trying to isolate the variable of the effect (if any) of having older homes in the mix. As for rent vs. sell - to me it is irrelevant - it’s all cash flow through time. There is a shortage of quality rental housing here and getting $900-$1000 per month for a quality 16X80 3/2 is no problem here. If I do that 5 years than sell it off on payments as a used house cheaper that’s fine by me. I’m indifferent.
How are you planning on selling them? (ie cash, 21st mortgage, rent credit, etc)
+1 to @Brandon’s advice, there were 10K of extras to the Clayton purchase price (which included moving, skirting, etc) of our most recent home, unless you’re doing it yourself. We had to put in the pad for the home, run some plumbing, walkways, light landscaping, decking, etc.
I’m open to different plans. First one I’ve done is rent to own. Not worried because I am giving the renter a smoking deal to fill the lot. All his rent goes to the purchase and the rent itself is not higher than market.