So my significant other and I own a few single family homes and rent them all out. All were purchased significantly below market valve and we have tons of equity now since prices have been rising. We still have money to invest, but she’s so against the “negative” aspects of parks that it’s hard to convince her of all the benefits. My goal in buying park(s) is too keep them long term for cash flow purposes, not buy and sell. I want to replace my stressful, but good paying job with other income streams and a park seems to be a great fit for my goals. Single family homes just won’t do it for me, unless I had 20+, not to mention the management nightmare.
Her biggest beef is the liquidity of a park - the time it takes to sell a park compared to a single family home. She’s convinced that if we ever buy a park, that we’ll never be able to sell it; or that it will take years to sell. I’ve tried hard to explain that we buy it at a certain cap rate; improve that cap rate; then we should be able to sell it without too many issues. Just need to quiet her fears regarding the “exit” strategy. Any suggestions?
Another topic she raised (which I don’t have a great answer for) is what happens when a tornado demos the park? Remember hearing Dave went through this with a park in OK. I’d assume insurance might cover the loss of business for a while, but for how long, and would tenant owned homes with insurance payouts just take the money and run?
Thanks for the advice.