I am trying to better understand the rent credit model.
If new 3br/2ba Mobile Homes rent for around $850 plus utilities.
Lot rent is $300.
Home rent is $550.
Assuming new homes run around 38k including transportation, set up etc.
28k Finance 10 years 10%
It seems I would be breaking even on the home rental side. Although I collect my full lot rent.
If I offer Rent Credit at 50%.
Then after 10 years they would have 33k in rent credit plus 2k from initial deposit.
I then could sell the home for 35k since it is paid off by then.
So I am looking at paying 10k out of pocket from initial down payment.
To receive $3600 in annual lot rent.
Or I could rent for two more years after the home is paid off collecting all $400 that was originally going toward mortgage of the home. $400x24mo=$9,600
This would reimburse me for my initial 10k investment.
After 12 years they would have saved up 39,600 in rent credit plus 2k from initial deposit.
So I can then sell the home for 41,600.
Do either of these models look good?
I have seen that some people add the costs of repairs to the purchase of the homes.
If this was the case then they would not be able to buy their home until after 15 years of renting at projected R&M costs.
How does this model look and compare to what you have seen?
Please let me know If I am missing anything.