I stumbled across an ad for a land lot in a nearby town with a decent mobile home already on it for $8,000 cash.
Is it possible for me to buy this lot with home, and turn around and sell just the house for $8,000 self-financed of course and charge lot rent forever?
It would seem people would pay higher lot rent to not be in the park. Plus, I don’t have to submeter. I’m getting the land with house for cheaper than I can buy and move most mobile homes to my current park. Has anyone ever done this?
I looked into this, and the biggest issue is that your Buyer would have neighbors on both sides of them who own the home and the land, which may be a turn off for them. You’re looking for a Park tenant in a community full of land owners, which is may be more difficult to find.
You also cannot control the behavior of the adjacent neighbors. If they decide they want to Park 9 cars in the yard and have aggressive breed dogs you cannot address that.
I think it can be done for sure, but the model is odd and may only work in certain markets - I guess if there is enough demand I would give a try and if it didn’t work out owner finance the land + home.
I’m guessing it’s just like bad neighbors anywhere, you build a tall fence.
Check with local RE and mortgage brokers - home and land packages sell rapidly in many markets.
You give up the long-term land lease, but since you’ve bought the home and land at a low basis, your profit should be worth it.
Hint: don’t buy it - have your Roth IRA option the land and any improvements. The profits go into your retirement account tax-free.
Keep us posted,
How do you option it into a Roth? I need to start doing that
I’ve done this and would do it again in a heartbeat if I could find the deals. Your find sounds like a terrific one!
I’m glad to hear you have done it. I really like the idea and want to pursue that route once my park is full.
Contact your Roth IRA administrator. They can (usually) help with the paperwork.
If you need assistance beyond them, please let me know.
Do you have a self-directed Roth? Like from paycheck IRA?