War Zones

mobile home university
1

Tried a different tack yesterday in approaching MHP owners and managers looking for LD possibilities.

I went to one of Ocalas trashier MHPs and found just what I expected. Weekly rentals, pit bulls, nightime activity and bars on windows (illegal in a mobile home rental here). Wow. 31 spaces, 14 occupied, no on-site management and belligerent tenants.

I was taking pictures of a FSBO 14 X 70 when the neighbor came out on porch with a pit on aleash and asked what I was doing, Told him what i was doing and he said I looked like popo. LOL I went about my biz and he went back inside his hovel

folks, there are Parks you just don’t want to enter…this was one of em.

I left a card and got a call at 10 PM last night from Owner of mobile and he was tripping. He asked why I left a card with my name and phone number and I said I was interested in his mobile for sale. Long story short he moved into the Park 2 years ago, anice setting with lots of familes. Lot rent of 125. He was from Michigan and thought life was good. Paid 11K cash for trailer (1984 S/W) and 2 months later Park was sold to two brothers from Miami. Rent was raised to 200 per month, thugs moved in, families moved out and his wife and infant daughter moved back to Michigan to live with his parents.

He works at the local Kangaroo for min. wage and is barely hanging on. I asked why he didn’t just leave and go home and he said it would ruin his credit breaking a lease.

WT? he wants to GIVE me title and bounce on Greyhound back home. I explained if I bought it I needed to talk to Owners in Miami…he told me there was no phone number only mailbox number for the LLC that owns the Park. OMG! two months ago a hose bib broke on an exterior line and shot water in the air for 8 days. The City (city water) capped the line and charged the owners. Over 60K gallons of water wasted and NO ONE called the Owners or the city.

I’m very sorry to say I can’t help this guy and make a buck too. This scenario happens every day in FL. Bills are being paid in this Park and taxws are current. Brothers are either rich and need the write-offs or laundering money…nothing else would explain a 400K purchase price cash and no improvemnts ar infill.

This a war zone now and the Park is almost worthless.

I refuse to even go in this Park again.

Did I do right or can anyone see a way to help this guy AND make a buck or two?

Greg

2

Random thoughts -

pull it out, put it in a nicer park.

How is this park being managed? I would LOVE to clean house on something like this - evictions, free dumpster days, pit policies, partner with local (ahem) popo, provide one-time yard and house cleanup to set the standard, etc.

Greg, I do not see LDing this home in place being a winning proposition, unless you just want to wholesale it. Best bet is yank it. Would other nicer parks spring for the move and setup costs?

3

I agree with Steve.

In my area there is a very strong market for used MH’s that are able to relocate. REIT parks here have crews out scouring the state looking for them. So if/when I find them, I can buy 'em, and flip the deal to those guys. They pay a lot more for homes than I do.

I’d get a contract on this one, then start calling around and post on CL to see what you can get for it. Selling in place is a bad idea from what you have described. It’s hard enough to sell a trailer… but when you gotta sell the trailer AND the park to potential buyers, it’s almost never a winning proposition (from experience).

4

All of your thoughts are good ones.

The local REITs will pay top buck for a 1996 or newer D/W. They routinely move them from Pensacola to Tampa and doll up and then sell for top retail. Theyhave millions and most REITs are divesting themselves of MHPs here in FL. It is critical that they keep lots full for them to sell.

An 1984 single in mint condition sells retail for 4 or 5K depending on construction (ply floors, shingle roofs, vinyl siding etc.)

They are impossible to finance even on ten acres paid for as collateral with a 800 credit score. (ask me how I know)

So if I work backwords, free home, 3500 to break down and reset. another 2K for steps, skirting, hookups (do it myself) in another Park, I would need to sell for 10K to make a decent spread and pay me for 2-3 months work. Every fsbo in Parks I’ve looked at are s/w homes.

I have several lots paid for that have water, sewer, etcon site. I am thinking of placing this on a lot and adding a rental. S/w are harder to rent but will still crank out 550 per month rent here. I could recup out of pocket in 6 months and who can’t use an added 550 per mo?

It will take half my savings but I believe in affordable rentals. My wife wants to wait for a D/W for free and get 700 rent for an acre fenced rental.I told her to add 3K to price of D/w and she countered with more rent, easier to rent, easier to sale. Sheesh so much for stealing in slow motion, eh? LOL

Welcome to investing in FL.

An unbelievable stat? If Cali was it’s own Nation it would be the 8th largest economy in the world!!!

Economy of California - Wikipedia

The reason I pick on Cali is I believe as goes CA so goes our Nation as it provides 13% of our GDP!!

Steve I am lookin for low lying fruit. Will advertise for free for all cash for 2K I’ll give owner 500 and keep 1500 after sale. If he won’t agree I’m gone to greener pastures.

Greg