@EricBarshinger , as per your question:
- “Renting out brand new homes”
I agree with @Ivan_ilych as:
- “I do not think it is a bad idea, depending on how strong your market is.”
As per @Ivan_ilych he:
- “…was at a conference recently at which a small, multi-park operator, Spencer Roane, gave a talk on doing exactly what you propose…Claims to have been successfully using this strategy for years.”
My Husband and I own a Turn-Around MHP in a very strong rental market.
Personally, I can see where renting out brand new homes could be a successful venture as you can have stable, hard-working Tenants who just might not have the credit score needed for purchasing a MH from a conventional mortgage company.
My Husband and I just recently purchased a trade in 2000 16 x 80 Single-wide MH for $10,000 (additional $2,500 to move it = $12,500).
The trade in MH needs some minor repairs/renovations: paint, flooring, replace some roof shingles. Once those repairs are completed we will rent (or maybe sell it).
After buying the 2000 MH my Husband and I had a “discussion” concerning buying used MHs versus buying new MHs. I suggested that we purchase just new Single-wide MHs going forward.
Now for our area we did get a good deal on the 2000 MH, but those deals are few and far between these days.
I agree with what @Ivan_ilych said concerning Spencer Roane:
- “He believes the extra quality and lifespan is worth the money and pays you back in other ways.”
We wish @EricBarshinger and @Ivan_ilych the very best!
@Ivan_ilych, please let us know which of your MHs does the best:
- Handyman Special
- One Rehabbed Home In $5K Range
- One Rehabbed Home In $10K-$15K Range
- One Brand New Home IN $30K Range