To rent or to sell, that is the question!
We are all familiar with the general pros and cons of either model. We are also aware that the desirability of either approach varies with specific micro markets, with the philosophy and goals of the individual investor, as well as with our national economic conditions.
I enjoy the benefits of selling the homes and of retaining the land. This model worked well in the past, especially for park owners. But is it equally as desirable for the present and the foreseeable future? To retain the land for perhaps a higher and better use in the future seems beneficial, especially if one believes that a “normal,” that is a stable political and economic climate, will grace us in a few years. We don’t have the gift of prescience, but the present economic/ political atmosphere does not bode well for positive expectations during the next few years.
Inflationary expectations favor the borrower at the expense of the lender, the seller of M.H.
The landlord is not locked into a contractual return on his money. He can adjust (increase) his rents within the constraints of the economic base of his tenants and the local market. He also retains the option to sell or not to sell.
It seems to me that in uncertain times, landlording, managing tenants and property while servicing the forever- needed affordable housing market, may be a reasonable way to prepare for and weather the coming storm.
I sincerely hope that this topic will be discussed in depth at Tony’s and Scott’s bootcamp by wiser and more experienced minds than mine.