First, I am thankful I found this website and forum and will have to keep an eye on a boot camp near me.
In the interim, reaching out to the community for advise. I have contracted to buy a 6 lot MHP and have one empty lot. The 5 rented are tenant owned. CAP rate on purchase 11% based on NOI of 5 lots, not 6th. I am believe the chances of having someone bring in a MH that they purchase is slim at best.
- Best to be on lookout for trailer to buy and sell to fill spot #6? This may be challenging in today’s market finding 10 year old or newer that meets cash flow requirements of lot value multiplier. Village has ordinance that requires this, however I can apply for a variance. I’m just concerned how long it may take for someone to do on their own and move in, obtain financing, etc.
- As owners move out and I in turn own, best I presume to invest enough money in to in turn sell. Stay away from renting.
- I also own storage and have ability to over-lock at 30 days. I do need to do better of on time payment expectations, but generally have been good. With the MHP, I will not have tolerance and will start legal process when legally able. I am considering discount for ACH/CC reoccurring payment. Has anyone had success with this?
- I will have work to better establish the pride in ownership concept, however, not horrible and could be much worse. Many of the homes are old and need some TLC.
Any help from the group greatly appreciated.