still lurking around trying to find that first park. received calls back from my previous offer but just cannot justify buying 20 additional acres at a cost of 200K … nice park but it is what it is.found this just before holidays and have just started conversations with the owner. this park is in a good state, nice area, and backs up to a new neighborhood. the park has 32 spaces, with 9 lot rent only, and 20 park owned homes. The POH are mostly 94-99 models with 3 mid 80s … all look nice from the pictures. all public utilities. with a lot rent of 150, and average rental of 500. nice roads curbed streets … the good old boy owner has had since 2006,told me he was bombarded with inquiries but wanted to deal with me as I am from the south like him … may be able to develop that relationship. the tax assessor’s site has an est sale price of 1.8M but when property was quit claimed in 2002 the price was 385,000. my guess is he is looking for about 600K but I think about 500K tops and that values each home at 10K … what do you think?thanks
Who pays water/sewer? Is it on city water/sewer?Take monthly lots, multiply by 60 if water/sewer is included in the lot rent. Otherwise multiply by 70. That is the value of the land. If it’s well and/or septic, I’d just walk away.Then add in the value of the homes. Value is what they can be sold for on contract. I’d guesstimate the mid-80s are only worth $2,000 ea., and the mid-90’s are worth $9,000 ea. But run test ads on CL and find out what your market will bear.Add up the numbers - real estate, plus wheel estate - and that’s what the total package is worth at a 12% cap. This is a smaller property. Unless you are saying it’s in a really nice major metro (Dallas, Omaha, Denver), then it’s not really worth more than that.Be sure to attend Bootcamp. It’ll answer all your questions, plus ones you did not even know you had.Good luck,-jl-
thanks for feedback Jefferson. the park is on city utilities and paid by the tenants. with the homes, 450K may be top price. I will be speaking with owner next week.I wonder about the large amount of POHs, I placed a test ad and drew just one response. I was forced to run ad in larger city 45 miles away, as no listing for this city on CL. Is it a bad time to run ad on 12/30? The city has 35K and metro 90K. The pakr is just a few hours from my home and would work out good … but if numbers do not work it will be a no go.rthanks
So where did you run the test ad and what was the exact wording?
frank … I ran the ad on CL, however ran the ad in the metro city which is about 45 miles away. I was surprised this city was not listed on CL. The city has 35K population with 90+ in metro areaThe test ad was worded based on a ad posted to the forum months earlier … Nice MH available for rent credit program, own your own home in 7-10 years. $525 deposit, and $525 on time payments for seven years, and we will sell you the home for $3000. With a good payment history, we will finance the balance. received another response … up to two now s
You may need to redo your ad. I model mine off of a spec home ad I saw one time. Their ad had nothing in it about buying a home. Once they get you to the property, that’s when they sell you the home. When we do our ad, I replace the words rent credit or sell with rent. Also, it is generally not wise to ever use the term “sell” when you are trying to sell someone something. No one ever wants to be “sold” something. Another trick that gets more traffic on your ad is placing a small portion at the bottom of your ad where you outline how close your property is to other larger cities. Especially if the town is small. For example, if I was running an ad in Willow Spring, NC, I would add:4 mile to Fuquay Varina, 7 miles to Holly Springs, 10 miles to Apex, 10 miles to Garner, 13 miles to Raleigh, 15 miles to Clayton.This helps your ad get found when someone types in "rental in "A second advertising strategy might be to use Facebook. We are currently working on a deal that is in a town of 8,000 and in a “no metro” area. This town has a yard sale page on Facebook that pulls incredibly well.
DeanS, we have two MHPs and we list both of our MHPs (POHs) on Craigslist.We have used Craigslist exclusively to obtain our Rental Tenants.The one MHP is in the City that we advertise on Craigslist.The other MHP does not have a Craigslist City. We advertise this MHP using the closest Craigslist City (approximately 35 miles).We definitely get much more activity from the Craigslist Ads that are in the same Craigslist City.However, we have found 6 out of 7 of our POH Renters using the closest Craigslist City.We advertise our POHs as strict Rentals with lots of pictures and renew them every 3 or so days.We wish you the very best!
Our standard test ad is:[NAME OF THE TOWN THE PARK IS IN, IN ALL CAPS] 2 &3 BR mobile homes for sale or rent from $495/mo – includes lot rent. (xxx) xxx-xxxx.It’s simple, straightforward, and gets the job done. Adjust the numbers to meet the park. Run the ad in the “mobile homes for rent” section of the largest metro newspaper. Make sure that your “Town” is completely descriptive of where the park is so that everybody understands the location. You can’t put “Orlando” you have to put the specific niche town, area or school district, for example.That, plus Craigslist, is a standard test.
thanks frank. I did get response asking about the part of town and one for school district. I will talk with owner tomorrow to get a conversation going. he must have a lot going on as I have received texts from him about a travel trailer for sale and a some kind of car carrier for sale, these texts were in error.