We have had mixed success. One of our communities is older, which means it has much smaller lots. In this particular community, we have had a bear of a time selling new homes. The combination of the recent new house price hikes and high interest rates, it is the first time we have had new homes sit for a few months. We have even begun renting two of the new homes to create some cash flow. Up until now, the idea of renting homes, we have avoided like it was the plague. Here’s hoping things turn around soon.
Our problem is not small lots, we have large ones. I’m just afraid that if I buy new that my customers won’t be able to afford them. 21st Mortgage did an analysis on my zip code and said my customers could afford to pay $950 / mo lot rent + payments. I was about $100 below that before, now I’m $100 above. I’m very hesitant to rent so I’ll plod along like this for awhile.
I still have lots of vacant homes (started with 25, now I have 18) and this spring I’m doubling down on getting them renovated. I’ve had mixed success in the past. Mostly they start out fine but fade as time goes by.