Proud new (relatively) owner here of a small park in California (+/- 20 spaces). Have experienced with another larger 100+ space park in the opposite part of the state.
Given the new law prohibiting park owned rentals we are going to sell the existing park owned home. The existing tenant has given notice and is moving out at the end of the month.
The park is in pretty high demand and we often field calls for people looking to move in. There are not frequently vacancies and when an existing owner sells the homes normally go pretty fast. Typical sale price/value estimates for existing homes is $75-$125K or closer to $150-$175K for new (basic doublewide).
The existing home is a 70s era and in pretty poor condition. I don’t expect much resale value (as is) and we’ll likely agree to let someone pull it in exchange for the cost to safely remove it.
We had previously considered installing a new home (simple doublewide) on the space then selling but with the new home prices up 30%+ where they were last year there is not a large margin to make it clearly worthwhile. I do realize the benefit of getting a home there and collecting rent.
Given the level of interest we’ve had so far in the “space”, I’m tempted to pull out the old home and just put a for sale sign on the lot. I know there are differences of opinion on how to value the dirt but in this scenario if we can generate $25K-$30K on the lot, without any need to prep or install a new home (and expose ourselves to the market risk profit wise), it seems like it may be a worthwhile consideration.
The way I see it, we have three options and I’m trying to identify how to maximize the value.
Pull out existing and install new.
New home cost estimated +/- $130K, resale value $175-$200K, less sale costs.
Sell vacant lot
Not sure on what we can get (per above).
Pre-purchase spec sale
Sell lot to a party for a fixed price for pre-determined home. We’ve done this in the past but it always gets dicey dealing with a (controlling) buyer. They do get the warranty though which is nice.
Curious to get any feedback here on how we might maximize value. The goal is to reinvest 100% of the proceeds back into capital improvements.