I was reading one of Dave’s older articles, which made me think about the irony and hyprocrisy when people judge MHPs vs SFR neighborhoods especially given my experience in the residential mortgage market.
As context I live in a pretty nice area in the Bay Area - prices are stupid now. But for the price of housing you would think I would live in a Pleasantville - not so. So when people bash MHPs, consider this:
- In my neighborhood, I can have several evictions, BKs, criminal convictions, etc and still buy a SFR so long as I can show income. Does any bank screen a buyer on evictions? Not in our MHP.
1a. Heck, an all cash buyer can (and has) buy any home if they have the $. Noone is checking their background prior to sale. Not in our park - we are particularly weary when someone offers all cash for a home. - Renter in SFR next door to me - nice folks but their yard looks like Sh#*. I dont have an HOA or park manager giving them violations. And it had to be REALLY bad for the city to get involved.
- Mortgage lending standards are going south again - I can buy a home for 3% or less down again with assisted down payments for a SFR. Wanna bet another bust happens. I think the MHP world has learned better - we require much more skin in the game at our parks.
- City is doing sewer work on my street - my sewer has been backing up for no reason. Do you think they care if I call in and tell them my sewer has been backing up – heck no!. A good MHP owner will check and address issues if they cause it.
- Maintenance of homes and yards: I live in a neighborhood with many older folks. Reality is a large % of them would have been evicted from our parks for the lack of upkeep on their homes and yards. And that is not because we are crazy vigilant.
- Most neighborhoods I have lived in, noone knows their neighbors or care. We have had many stories of our MHP folks banding together to assist when someone really needs help.
[aside from HOA communities] On a relative economic basis, which community is really the less desirable. It makes me wonder if the role of of a good MHP operator who truly believes in the overall good of the community is better. Of course we own parks for business, but let’s face the truth - every entity involved in the formulation, sale and livelihood of a SFR community also thinks from a business perspective (not including true non-profits).
Just my Friday night ramble … cheers!