I suddenly have what feels like a glut of homes for sale in one of my parks
it is a 72 unit park (we reserve one lot for the office)
During our glory days, we would have one or two lots kept open for new home sales, but in the last 10 years the vacancy rate was about 10 %, still not too bad considering there are no sales lots around here.
Late this summer I brought in three 1990’s homes to rehab two of which are done but 1 is more work than we originally planned
But it left me with only 4 vacant lots…and immediately made the park look better
but then I had two 1970 model homes abandoned
and in the last thirty days an unprecedented exodus LOL:
I had a tenant give me her late 1990’s home as a rehab…(more work than expected on this one due to massively deferred maintenance)
Then I had another late 90’s home given as title in lieu of rent…again lots of work to rehab that one, but it now nearly done
a 1970’s home given to me upon death of the tenant
Then a 1970’s home given to me as the owner went into an assisted living home…mediocre shape inside, but siding roofover outside
now another 1990’s home in lieu of rent needs a little work
and now it looks like I’m at least one more 1970 home in lieu of rent…ok on the outside with newer roof, siding and skirting but lots of cosmetic inside and heat problems
and I have one tenant in a 1970’s home that I need to evict for non payment…so I’ll probably get that one too
so now I still have the 4 lots to fill, and the 2 abandoned homes and the reserved lot (office)
but on top of that I have 6 1990’s homes and at least two (probably 4) 1970’s homes on the market
that’s more than we have had for sale since the park was first built, and this is in a small town to boot! If I put them all 10 on the market, this would make more homes for sale in our park than in the entire town.
…and this is traditionally a terrible time for us to sell, with the holidays, we don’t see homes move until Feb or March when income tax refunds come
it’s making my head spin, so I’m thinking of mothballing the home that is too much work, and as much as I hate rentals, just taking the homes that I have the least tied up in and lease them out for a year for the cash flow while I try to sell the refurbished homes.
Once the refurbished homes are sold, I’d tackle the rentals and either convert them to contracts or end the lease and refurb to sell.
I think it looks fishy to buyers when they see a lot of for sale signs
or should I just put everything on the market at once and hope for the best? I still want to fill those 4 empty lots too. plus there’s the abandoned homes to deal with
how do you handle these “opportunities”?
take into context that I am getting ready to list this park this spring