So I have a deal on 4 individual neighborhood infill lots with mobile homes already installed and tenants already in place. Tenants are all interested in owning. Can I just sell them the homes but still charge them lot rent? The price on this is compelling enough to make me want to do it, and I already have a MHP in the area, so my manager could still oversee these random infill lots in the neighboring community.
Curious if anyone has any experience or knowledge with something like this?
Sounds like a good plan. I really like the idea of clustering and adding other MHs close to a main park.
Would the tenants pay for the MHs outright or would they need to go on a payment plan? I have heard of several different kinds of payment plans, from gifting the homes outright to having a ‘home credits’ system to having a 3rd party like 21st mortgage take over the loan, in addition to rent-to own. I might suggest meeting with an attorney with experience in MHPs and seeing which option might be best.
I would likely push the 21st route and try to sell outright, if they qualified (which I think they would). I am already approved with 21st in the state because of my other park. I’d have to reach out to 21st to see if this is something they’d still even do though, since it’s not in an actual park.
Worst case is I’d just do a Lease Purchase, which is similar to a rent to own but has some distinctive differences that helps it pass muster with the local judges so we can do a standard eviction if needed vs repossession for non-payment of a loan.
How are the homes titled? Are they titles as chattel or real property? If the later you probably can’t, but you could try talking to a lawyer.