Wanted some feedback from regarding a plan I’m throwing around:
Buy a 33 lot park that has 14 owner occupied spaces with 19 pads empty. Lot rent currently $100 and should be around $150. All empty pads have hook-ups ready. Buy this for 120k.
Bring in 19 unit to place them on the rent-to-own program. Buy units for $1500-$2500 and put $3500 in each one plus 2k to move them. 19 units would cost 152k. Rent-to-own for 30 months at $475-$500.
Park would now be worth 415k with $150 lot rent and 10% cap. Park would have only cost $272k and if you factor in the profit on the MH even less. Down fall is this might take 6-8 years to accomplish.
A popular question I see asked is “Whats your plan?” or “Whats your exit strategy?”. My plan is to hold and grow the number of income producing properties. My exit strategy is when I’m old and gray to start selling off my investments. I’m still on the younger side… Sorta.
Capital is tight so while you can finance the park I would be coming out of pocket for the mobile homes. I just wonder is my money spent better else where? Would love to hear everyone’s feed back!