There are a couple buildings (1 small home and an apt with 3 rentals) that are in the park (which has a paved road and sign in front).
I’d prefer to sell them off even though they are in the park, but this probably means I need to sell them completely as I dont see how I could sell them to the tenant and just charge lot rent, because they cant ever move them out.
Is this normal/okay to do? I prefer not to own the assets/rental units.
If so, could I sell to existing tenants and charge standard lot rent, or do I need to sell to someone who would own the underlying land?
City says they think its fine to sell the whole thing (i didnt ask about lot rent model), but wanted to ask here.
Sure, you can sell them to the tenants or a new owner. In this instance, the properties would than be on a ground lease. You would own the ground below still and they would own the building(s) and can mortgage them as they please. They would still pay you rent. Usually, these types of transactions don’t occur on such small assets and lenders may not be willing to finance them, if you never know. You’re easiest and cleanest transaction is just selling the home and apartment building to an owner and/or investor.
If you have a mortgage, you need to make sure you can remove the home and apartments from the collateral pool.
You should be able to do a Certificate of Compliance (a lot split) and remove the home and apartments from the Mh park parcel.
Once they are on their own parcel you can sell them as fee simple property. You will need to hire an engineer to do the work. There may be some underground utilities issues and easements to create, but overall it’s just a paper transaction with the Local County Assessor/recorder’s office.
Yes, you can sell the home as separate real estate. In fact, we just bought a park that has a home at the front entrance. The land was legally subdivided and the house is now on its own parcel. The only issue is their water/sewer lines are intertwined within the park’s water/sewer lines. An easement may be needed for that. We have another property that has a home up front an we are thinking of subdividing it too.