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. Itâs 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, whatâs the option fee cost? (The down payment?)
If your answer is $0 (or huh?) then no, you canât do what youâre proposing legally. Itâs a disguised mortgage if youâre renting the house for (say) $300 plus lot rent and then with final $1000 payment (IF theyâre in good standing and IF theyâve been good tenants) you give them the house. Thatâs 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 itâs 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 Iâll 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 canât predict the future.
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For your POHs what are you doing to sell them or off load them?