Sell a stick built home but keep the Land and charge lot rent?


#1

Is it possible to sell a stick built house off but keep the land and charge lot rent?

I am looking at a park with 5 small 1-2 bedroom cabins rented at $375-$600. I have a few one bedrooms now and find them to be a waste of my time.

They are spread throughout the park interspersed with the mobile homes so it would not be realistic to carve them off and sell the land. These are in Oklahoma.

Is it possible to sell the cabins off and charge lot rent? If the tenant did not pay lot rent could I get them back?


#2

Mobile homes typically have a title and a mechanism to convey the chattel, I would say no but I don’t know anything about OK or the structure of the cabin. But then again, I know people move houses , like stick builts…


#3

I’ve heard of long term land leases with chain restaurants but I’ve always wondered the same thing. I have a park with large lots and lovely views. Have considered transforming into a Tiny Home Park and even just small cabins and still renting the land to the homeowners. Not sure if its possible but it would be cool


#4

toben,

Let’s keep this simple.
Simple will make it easy for your buyers to say yes.

If the properties are on their own parcel:
Many title companies have deeds they will prepare for you.
Instruct the title company to deed only the structure and NOT the land.

If the properties are on land owned by the park:
contact the MH division for the state of OK.
tell them you wish to sell the home and NOT the land to a new owner.
many states use a form similar to a car title.

Make sure you have the buyers sign a lease for the land. No lease - no sale.
A local OK Real Estate lawyer can help you there.
Have the buyers pay the lawyers fees.

keep us posted,

Mike


#5

If you are getting a loan to buy the park there may be restrictions relating to selling the homes. You’ll want to ask your lender if it’s allowed.


#6

@mhmike so this is really a thing? any experience doing this ? I’m intrigued. How do you handle the property taxes in this situation? try to get a separate account to buyers in their name?


#7

Sorry, I missed your reply.

Property taxes on the remaining land?

It would be reasonable to expect the land value of an individual lot would be less without a structure attached.

I’ve done mh conversions from titled mh to real estate. That increased the value so my buyer could get an fha loan on his new residence. Included lot and building.

Logically, the reverse would also be true. Remove the mh from the lot and the lot value diminishes.

But then, we are dealing with local municipalities, and logic may not apply.


#8

Property taxes on the site built structure ( improvement that is not mobile home) . This is specifically only to a site built home , have you done this where the site built home is deeded you keep the land and then somehow the home gets broken out on the tax rolls to the end buyer and you charge the site built home a “lot rent” ?


#9

That’s something a CPA or tax pro should answer. I’m not qualified.
If John Hyre is available, he’d be the one I’d ask.