I have a 72 lot park I acquired in Kansas - dirt roads… right on highway though, good schools, near new state owned casino and major employers. I get calls every week from prospective new tenants wanting to buy or rent - but I don’t have any inventory to sell to them. Currently I am limited on cash until I either sell some of my other personally owned single family rental homes to raise some cash or I sell a part of the park.
In my position - what do you think would be the best way to raise capital to begin buying and infilling the park? It’s above breakeven from expenses with the mortgage payments - but it can do a lot better. I have 35 or so lots occupied at $275 with fairly low cost ratios at this park - 20-25%
The numbers and location seem favorable - I just need capital or some relationship to sell more homes and help fill up the park more.
I have talked with a few of the regional dealers - but they of course own their own parks and don’t like dealing with the competitors in the area. I see a lot of homes up for sale by owners upside down, in foreclosure with greentree or at parks that are closing down - mom and pops that dont want to run them anymore or give in to city pressures to rezone or otherwise are mismanaged… There is no need to buy junk homes - there are plenty for sale that are livable and clean.
Just looking for some ideas where I don’t have to give away the entire park or sell off my other homes if I can help it. I certainly don’t mind selling my rental houses to raise the cash - it just takes time. I am estimating that at a minimum I will need $50k to begin purchases. I beleive I can get 3-5 units in here for this and that will increase income enough to reinvest the downpayments and rent/sales contracts payments toward more units - the goal being 54 to 60 units. At 60 units the park is raking in the cash on lot rents alone - the 10-15% return on average on the resale homes is extra icing on the cake to go back to investors.
I’m open for ideas at this point.