Virgin here…trying to find a park to buy. I found a park, (about 100 pads), that looks interesting. Owner willing to carry loan. The problem: All park-owned homes. Although I might tolerate 15-20% POH, I don’t want all POH’s. The owner is willing to retain the homes until he can sell them (Notes), and guarantee the lot rent… With him carrying the loan, that part seems fine. Of course, in such an arrangement, there would need to be an agreement (also inherited by the buyer of the home) to leave the home in the park for a specific number of years. But what happens when I have a “problem” tenant?
I can forsee possible difficulties in such a stiuation. If there’s any problem with the tenant (Monster dogs, nuisance, etc), I don’t see how I can remove a tenant who is responsible to someone else for the payments. Obviously, I don’t want the home removed…only the problem tenant.
Also, I can see a strong possibility that such an arrangement, complicated by problem tenants, might lead to a conflict with the seller (who now holds the notes on the homes).
Those buying homes with low (or nothing) down, are no more controlable than renters, uintil they have built up some equity. (vested interest).
Any suggestions as to how to overcome this challange? Frank ? Jefferson ? anyone ???