Selling park-owned homes

Can I lease out the lot rent on a separate rental agreement, Lease out the mobile home on a separate rental agreement (no violation of Safe Act here), and in the mobile home lease indicate that at the end of 3 years tenant has the option to continue renting it, move out, or buy the home for $1000 cash? Is this legit?

After three years if the home is worth $1k, what is it worth today?

Not sure exactly, but might be anywhere from $5000-$10000 in value. It’s a 3 bedroom single wide from the 90s.

So why do you want to sell it for cheap? Why not rent it for three years and see where you are? This is a real question.

To put the same question in a different light, what’s the option fee cost? (The down payment?)

If your answer is $0 (or huh?) then no, you can’t do what you’re proposing legally. It’s a disguised mortgage if you’re renting the house for (say) $300 plus lot rent and then with final $1000 payment (IF they’re in good standing and IF they’ve been good tenants) you give them the house. That’s just a credit purchase from the get go. Except without the standard protections of home purchases and credit consumers for three years. You can see why it’s illegal and considered predatory. I hope.

The problem is when you get a dud renter and want to evict, you have to be ready to face real lawyers.

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I understand. So may be what I’ll do is just write up a strictly straight up rental agreement. I will not indicate in there that we will be doing anything in particular after 3 years. Then after 3 years I can offer them an option to buy they home, if they say yes, then rip up the old agreement and make a new lot rental agreement, and transfer the MH title over to them.

How does that sound?

That sounds reasonable. You can’t predict the future.

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For your POHs what are you doing to sell them or off load them?