What is everyone’s opinion on buying a park made up of a majority of occupied 12 ft wide trailers? Deal killer or not really? (given that all the other DD checks out great)
It can be more difficult to sell these shotgun homes, when most of the competition will have wider homes. A 14 footer feels narrow to me as it stands…
If everything is tenant owned then it doesnt matter as much except when you have to take one, but consider it more if there are POH… You would have to sell these at a discount since they’re an odd configuration and will have smaller rooms.
Yeah they’re all POH unfortunately
All POH means you will have to try to sell to current tenants and probably repair / remodel 50% of them for sale, more or less.
This will not be a budget friendly deal due to the POH repairs needed when many of the current tenants are deadbeats with no interest in ownership.
I would walk on this one. If they were 14 wide or more and money wasn’t an issue, and the purchase price was 12 cap or more I would do it.
I’m looking at 100% occupancy and each tenant paying $350 a month, with the metro at 355,000 people
When you are ready to sell is the question–what buyer wants those antiquated homes as a future buyer and are you satisfied that you are providing good, safe living conditions to your residents. We are amazed when we take time with potential residents after they look at lots of parks and conclude why they want to move their new home into our parks. We rented another lot today and they immediately went to a dealer and bought a new home. Most responsible home owners want a quiet, safe park, nice blacktop roads, with newer homes already in the park that have no deferred maintence to protect their new investment. Would you buy a nice home in a rundown area??
Do you drive a 40 year old car?? Just thinking!!! At what point are the 12 wide MH’s not marketable and you need to update with newer more energy efficient homes. Example some years ago we found some residents air-conditioning bills where hitting $250 per month basically the same as lot rent. What happens if the air-conditioning bill was $125; we could then easily charge more for the home rental and the renter would be more comfortable plus much better for future potential park buyers… We are dealing with humans not cattle and we enjoy making lots of money but never putting people at risk or questionable housing. In the last 8 months we have received over 12 new residents and mostly with new homes. Our parks advertise our business model are you comfortable with that model??
Great points @carl! I’ll keep them in mind