Just did a lease to own on a '98 Cavalier doublewide, and wanted to know what the board thinks about my deal:
I paid $10,500 for the home
Spent $5,200 on move and improvements–Have enough leftover laminate in this number that I am reflooring another vacant with–Number a bit high
Total upfront cost of $15,700–no debt service
Sold for the following terms:
8 years loan
Monthly Payment: $311.07
Lot Rent: $122–This is right at market for lot rent in this rural area in Alabama
Total Monthly Payment: $433.07
Plus water charges
Tenant purchased insurance
I am not really pleased with the deal, but more interested in growing the park than making huge returns on home loans. I own the park and had 3 vacant(now 2 to go). I have been selling all my homes lease to own. I have run the numbers and they are OK, I guess… I have owned the park for 5 years and have paid off 5 homes that I added to the park and cut my park debt down significantly. I have reduced my debt on the park down to under 70K. The park generates over 4000 per month in gross rental income on average and I have $940 debt payment. It is clipping right along. I am constantly looking to the board for ideas and input.
Happy Thanksgiving to all the contributors and fellow Park owners out there!!!
Engel Realty Company