Coronavirus..."The Sun'll Come Out Tomorrow"

mobile home university
1

From the 1982 Movie “Annie”:
“…When I’m stuck with a day
That’s grey
And lonely
I just stick out my chin
And grin
And say
Oh!
The sun’ll come out
Tomorrow
So ya gotta hang on
'Til tomorrow…”

Coronavirus (COVID-19) has changed all of our worlds in what seems like a blink of an eye.

A “Seasoned Insurance Agent” emailed the following:
“…I recall nothing like this in my lifetime. The responses to the swine flu, west nile virus, zika etc all seemed to come and go with little disruption…”

Unfortunately, the Coronavirus has a lot of people frozen with fear.

My heart goes out to everyone affected by Coronavirus and NO deaths are acceptable.

If you have read any of my previous posts, I am actually a “Very Financially Conservative” person.

My Husband & I own 2 Mobile Home Parks.

Our Mobile Home Parks happen to be located in Hurricane areas and perhaps the Hurricanes have given me a different perspective.

Yes, I understand that a Pandemic and a Hurricane are not the same.

However, Pandemics and Hurricanes do have some similarities in terms of doom and gloom.

We are on the Southeast coast and have had a lot of Hurricanes headed our way in the past years.

In addition in 2015 we watched a 500 Year Flood cause serious damage to people and property.

During the Hurricanes and the 500 Year Flood there were lots of “gray days”.

However, amazingly AFTER the Hurricanes and the 500 Year Flood the sun (literally & figuratively) does “Come Out”.

In terms of the Coronavirus the “Sun Will Come Out Tomorrow”.

Literally tomorrow? Probably not.

However, there is hope at the end of the tunnel.

Do not worry about tomorrow.

Seek the joys in life.

As per the saying:
"Worry never robs tomorrow of its sorrow, it only saps today of its joy.”
– Leo F. Buscaglia

We wish each of you the very best!

4 Likes
2

Guaranteed this wont be the pandemic in size CNN and MSDNC are working for. Dense areas like NYC will see the worst of it. Country going back to work in other parts in days not months. We’re not imploding this country or economy cause of China, promise you.

2 Likes
3

Thank you for sharing. Could you describe the recovery period after the hurricane in detail? What did it look like on the ground and financially? What was the cost to repair/ replace the MHs and MHP infrastructure? Did the tenant base stay the same or change?

4

@bogardusbenjamin , as per your questions:

  • “Could you describe the recovery period after the hurricane in detail?”
  • “What did it look like on the ground and financially?”
  • “What was the cost to repair / replace the MHs and MHP infrastructure?”
  • “Did the tenant base stay the same or change?”

We have 2 Mobile Home Parks.

One is closer to the coast, so I will focus on that MHP.

The MHP closer to the coast is a Turn-Around MHP with 65 Total Lots on 11.83 Acres.

In February 2012 when we first purchased the MHP there were approximately 27 Tenants (out of 65 Total). As of today there are 64 Tenants (out of 65 Total).

Thus, for the past 8 years during multiple Hurricanes and a 500 Year Flood all news during these events were doom and gloom.

After the Hurricanes passed and when the 500 Year Flood stopped (and it was safe to travel) we immediately went to the Mobile Home Park to access damage and coordinate efforts to fix any problems.

For most of the Hurricanes our Tenants had lost Electricity (like the rest of the surrounding areas). We immediately went around the MHP helping Tenants to report online their Electrical Outage (as the squeaky wheel gets the grease). Thankfully, we were able to report enough Electrical Outages that our MHP was able to regain power in a short time frame.

In terms of Mobile Home damage there was one Tenant Owned Home that had a limb (from a very healthy tree) fall on their roof. However, there was no other damage to any other Mobile Homes.

Now, please note that since we live near the coast all of our Mobile Homes must be Wind Zone II and have tie downs (which helps with the higher winds).

In terms of Mobile Home Park damage we had one tree that fell, but thankfully did not cause any other damage.

In terms of the 500 Year Flood the Mobile Home Park is located on the highest point in the area, so all rain water drains away from the MHP either in the front or in the back.

As for infrastructure it was not really affected by either the Hurricanes nor 500 Year Flood.

Our infrastructure is a continual process of making sure the water is directed away from the Mobile Home Park and that the roads do not have potholes. This is just a cost of doing business.

Our Tenant based stayed the same with all Hurricanes and the 500 Year Flood with “One Exception”.

Our “One Exception” was the Tenant who believed in the motto below (please note that I am referring to the saying-NOT politics):

  • " You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before."
    Rahm Emanual

My Husband actually first met this Tenant mowing our neighbor’s lot before we even purchased this Mobile Home Park. When my Husband first met our future MHP Tenant, the Tenant spoke about the “lawsuit” he was filing against a Doctor and that one day he was going to be rich.

Fast forward and we purchase the MHP with our “Lawsuit Tenant”.

When the 500 Year Flood of 2015 came and went FEMA announced that they would help Flood Victims (which is great for those who were truly damaged).

Despite our MHP being in the topographically named “Pleasant Hill Area” (the highest point of the surrounding 5 mile radius) our “Lawsuit Tenant” went full force into devising a plan to “seize an opportunity”.

Please note that this Tenant lived at the highest point in the MHP and that we had a POH next door. In addition all Mobile Homes in our Park are blocked up at least 3 Feet from the ground. Absolutely nothing happened to our POH next door.

However, our “Lawsuit Tenant” stopped paying Rent (even though his family received government support) and lined up FEMA to get his full benefits. FEMA proceeded to call my Husband and yell at him about how horrible he was.

Come to find out from the Tenant across the street (during a normal course of conversation several months after the 500 Year Floor) the “Lawsuit Tenant” had taken his pressure washer INSIDE his Mobile Home and intentionally pressure washed the inside of his Mobile Home so that he could get FEMA money. In addition underneath his Mobile Home the “Lawsuit Tenant” took a tool used to “texture drywall” and “textured” the bottom of his Mobile Home with mud to create a “Mud Line”. Unfortunately, the “Lawsuit Tenant” must of gotten tired in the creation of the “Mud Line” and did not finish. Thus, mud was only on part of the structures (Not consistent with a true “Mud Line” from a Flood).

Thus, in conclusion the “worst” part of the Hurricanes and the 500 Year Flood for our Mobile Home Park was the doom and gloom.

Please note that there were people in other parts of the area that were affected by both the Hurricanes and the 500 Year Flood.

However, Americans are resilient (able to withstand or recover quickly from difficult conditions).

  • AND

Some Americans will even receive a check in the future :-).

We wish you the very best!

5

Haha! That is great, thank you for sharing. I have heard of these ‘serial extortionists’ who move into MHPs and then try every way to find a reason for a lawsuit. The pressure washer inside and texture drywalling the bottom of the trailer… that’s priceless.

Sounds like tying down the homes and locating in an elevated area are pretty key to avoiding the bulk of the damage from hurricanes and big floods. However, the Corona crisis is widespread and the challenges are likely to be more on the management / financial side for MHPs owners. Any thoughts on how to navigate these? Maybe there are some takeaways you have from previous experience that apply.

6

You do realize that the big cities most hit by this virus are often the economies that drive the rest of the state? The big cities bring in the most taxes, the payments for the infrastructure, etc for the entire state. They also drain the state of all the money too. The CDC also has said that the rural areas will get hit by this virus, but at a much slower rate …it might hit your community in summer.

1 Like
7

:man_facepalming: Stick around. I would suggest you define success with numbers. Best case scenario is 100k American deaths which seems like a pipe dream at this point - is that an acceptable outcome for you?

“Cause of China”? It’s here, and spreading exponentially as we speak. Chicago is the next hotspot, which will spread to much of the rural center of the country. I’ll take the other side of your days vs. months proposition.

I would also scale back on your Fox News, OANN, DJT twitter feed, and MyPillow CEO speeches in the Rose Garden corona election rallies.

Thankfully, this type of naivety is going to much opportunity for those that don’t get wrapped up in polarization. This will take many many many months to flush out and will not be pretty.

5 Likes
8

I’ll put you down as a ‘Wuhan Flu denier’. Or Luhan as Joe calls it.
Dont forget turning off Breitbart News too.
Good Luck!

1 Like
9

@bogardusbenjamin , as per your question:

  • “…However, the Corona crisis is widespread and the challenges are likely to be more on the management / financial side for MHPs owners. Any thoughts on how to navigate these?..”

As a Mobile Home Park Owner you must decide are you:

  1. Non-Profit Organization - (NPO):
    A Business that “focuses a goal such as helping the community and is concerned with money only as much as necessary to keep the organization operating.”
    OR
  2. For-Profit Organization:
    “A business or other organization whose primary goal is making money (a profit).”
    The above definitions come from the Website:
    http://www.businessdictionary.com/definition/for-profit-organization.html

IF you are a Non-Profit MHP, you probably are willing to eliminate (or greatly reduce) the MHP Lot Rent (or POH Rent) for your Tenants during at least the month of April.

IF you are a For-Profit MHP, you will need to decide your Business Plan to survive.

For the Coronavirus each Mobile Home Park Owner needs to decide their Business Path:

  1. Not changing any rules
  2. Forgiving Late Fees for a Specific Date Frame
  3. Forgiving Rent for a Specific Date Frame
  4. Working out Payment Arrangements
  5. Combination of the above
  6. Or something different

Since Mobile Home Parks have so many variables (Physical Location, Demographics, Types Of Tenant Jobs, TOH Mortgages, MHP Mortgages, MHP Static Expenses, MHP Dynamic Expenses), there is no ‘correct’ answer.

Our 2 Mobile Home Parks are For Profit Organizations.

On another Post (Residents asking for state of emergency break) @Noel_S kindly posted a “Draft of Forbearance Letter”. A Big, Thank You to @Noel_S!

For our MHPs we send out Physical Monthly Bills. Thus, for the April 2020 Bills we added an extra Letter/Application to say that “those whose Income or Job was affected by the Coronavirus (COVID-19) could ‘apply’ to have the April 2020 Late Fees waived IF they paid their Rent IN April 2020”.

Thus far, we have had 2 out of 84 Tenants fill out an Application.

One Tenant explicitly stated that their income was NOT affected by the CoronaVirus, but they were at home ‘self-isolating’. The other Tenant stated that they needed to stay home with their children which affected how much they could work.

The majority of our other Tenants’ Jobs are in Residential Construction (which is ‘Essential’).

As per the article:
“DHS Designates Residential Construction as ‘Essential Infrastructure’”
Business"DHS Designates Residential Construction as 'Essential Infrastructure Business' - NAHB

There are actually quite a few ‘Essential Businesses’ as per the website:

image
image886×857 187 KB

After graduating from college I moved multiple states away to a city where I knew no one and with no job. Thankfully, I was able to rent an apartment in a good part of town.

For me I was raised with the priorities of:

  1. Shelter
  2. Food
  3. Clothing

Although I knew no one and had no job, I immediately went to a Local Temp Job Agency and took their assignment (Receptionist at an Insurance Agency).

For me ‘Shelter’ was my ‘Top Priority’, so I spent the next several months sleeping on a comforter and sitting on the floor watching tv.

Thus, for me ‘Shelter’ should be one of my Tenant’s ‘Top Priorities’.

This is actually one of the reasons we send out Physical Bills. A Physical Bill can be prioritized with their other Bills.

Do bad things happen to our Tenants which causes them to need grace? Yes, most certainly.

Thus, part of our ‘Business Plan’ is:

  • “Structure with Grace”

We most certainly will give our Tenants “Grace”.

However, “Grace” does not negate the “Structure” portion (Paying Rent).

All of our Tenants have 30 Day Leases. Any Tenant can leave with a 30 Day Written Notice.

Our Tenants do not ‘have to’ live in our MHP. If they Rent, they can go Rent somewhere else. If they Own, they can either sell their Mobile Home or move it. Yes, moving the Mobile Home will require ‘extra money’, but that is part of the responsibility of owning a Mobile Home.

In our larger MHP one of our POH Tenants just purchased their first single family detached home yesterday (which is awesome). In the span of 24 hours there were 2 different Tenants inquiring about purchasing the Mobile Home. All these Tenants knew was that there was a U-Haul in front of the Mobile Home and people were moving out.

We wish you the very best!

3 Likes