I have a site-built home aim my mobile home park in AL that I wanted to sell and then lease the lot to the buyer, just like you would a mobile home. Only bummer is I of course the buyer wouldn’t be able to get financing through 21st Mortgage or PEP. But other than that, is there anything else I should know or need to worry about? Has anyone else done something like this?
I’d check with an attorney… specifically regarding how you would handle the deed (and how the city/county would asses RE taxes) and what the eviction process would look like should they stop paying.
Good advice and good points. I have consulted my attorney in the area and will see what he says.
Just wanted to circle back and let you know I did speak with my attorney and the long-and-short of it would be that if it came time for eviction, it would be a bit of a mess and a toss up with how the judge would view it, or in case the tenant sought legal representation. They could easily argue that I would have to “foreclose” since I was trying to kick someone off the land who owned the site-built home on the land, and I would run the risk of being tied up in court for a good while trying to prove otherwise. Or instead just foreclosing form the get-go instead of evicting, which is a process I would rather not get involved with.
So I just opted to rent the home out to avoid all the other potential headaches. Unfortunately!
That’s about what I expected but thanks for coming back to post your findings!
One idea you could try is to do a lot split and legally split the SFR from the Park.
This is a very common value addition for MHPs.
Many park buyers (including me) see an SFR attached to the park as a negative.
Do the split, sell the house, and keep the park. Likely it will be a big value add for you.
House split is a great idea.
The house split maybe; is the house in a location that could be averse to your park if the new owners are ???
Once we bought a house next to our park and rented it with a good return since the home was priced very reasonable. Another time a nice 1600 Sq. Ft home in the outside corner of our park we bought and destroyed it and replaced it with 6 mobile homes. Every situation is different and a SFH can be an asset since the rental market for most homes is great and the value increases with rental
increases where as MH"s depreciate even in this market. Presently one of our parks has a 1600 sq. ft. home built during the 70’s costing $12,000 to built and presently on the 1 acre lot will sell for over $300,000 .
Those are very good considerations. The location of this house is on the front side of the park. But you have to drive through the park to get to it. So it doesn’t lend itself to easily carving it out. Unless I were to buy the adjacent land next to it to allow for ingress/egress from a public street, then join the lots together, fence off the home from the park, and sell it. Which is something I may do at some point down the line.
This is on septic, so more cost involved in this case to demo the home and convert into multiple MH lots, but also a good idea I hadn’t thought of.