I was wondering how owners handle when residents want upgrade from an old/small mobile to bigger/newer mobile.
For example, the park has a nice 3bed 2bath vinyl/single home that is fully rehabbed with new flooring and paint which in my market goes 14-17K on payments with $1000-1500 down. A resident wants to give the park his old home for the down payment and make payments. The old home typically needs $3000 in rehab and might sell for 7K.
I have not done this kind of trade in before, I normally tell the residents to try to sell their home for cash and then do transaction with the park. The residents never have been able to sell because: cash buyers are hard to find and the homes need work. I have lost a least one good tenant because I was unwilling to do the trade.
The problems as I see them are: 1) I’m basically trading a good home for a old home that needs work. 2) I don’t want to lose a resident to another housing option because they outgrown their home or want to upgrade. 3) Each time I do this instead of getting $1000-1500 I have to put out $3000 in rehab $ in exchange for payments 4) In my market, the 15k newer is generally easier to sell than the older one at $7000.
I searching for a solution that retains good tenants but is structured in a way that works for financially.
Thanks for your input!