We are approaching three years as a mortgage holder of 45 spaces (between two parks) in a tertiary market 15 minutes outside Wichita Falls, TX.
Previously owned by slum lords we acquired it with 23% occupancy and trees that had never been trimmed, much less maintained.
We have gone through evictions (about to start another), more contractors than we care to count, name it and we have experienced it. Occupancy is now double than where we started. Income is just under $5k/month.
Current tenants pay $175/ lot rent but as we market spaces for new tenants, we advertise $200/ month for lot rent. Tenant is responsible for all utilities. There are seven POH occupied, with the potential to bump that up to nine. We have eight teardowns and nine MH’s that need significant rehab that I am letting go for free just to get lot rent. Sixteen lots are vacant.
We applied to 21st Century Mortgage, but that was a year ago when things were dismal. We may apply again soon.
So, a few questions and feel free to critique – thanks in advance for any and all comments.
- We spend A LOT of money to get these homes livable for people to move out in a year when we haven’t even recovered our investment. What is the best practice timewise to recoup renovate money on older units? Or is the better question, what should my cap be to spend on renovating an older MH? (1980s)
- We have thought about bringing in a partner, but since we live in South Texas a condition would be that the person lives in North Texas. Is this a realistic request/condition? What could we offer a partner with $150K capital interested in this deal for a % of the parks?
- Where does one even begin to determine if converting a park to community ownership make sense?
- I know that people in our culture like to do everything fast and expect instant gratification. Buying these parks has often felt like taking one step forward and 5 steps backward. How does one balance the slow and steady approach to answering the question - is progress being made?