Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
I have recently been working to figure out how to make certain park purchases with a lot of Park Owned Homes (POHs). More often than not the owners are overvaluing the park because they are giving value to the homes.
The two ways that those come to create value are renting them for money over the lot rent and selling the homes. I have sold multiple homes in my communities and gotten to the point where I am buying the communities for very high returns once I sell the POHs.
I believe that someone willing to purchase a park and sell the homes can put themselves in a much better position as a community, for the long run and the short run. Don't be scared by POHs, learn how to use them to create value.
Market conditions need to be just right and you need the proper maintanance structure in place. Spend more on overall maintenance but bottom line NOI 30% better than if all TOH. This one park allowed me to retire early.
Market conditions need to be just right and you need the proper maintanance structure in place. Spend more on overall maintenance but bottom line NOI 30% better than if all TOH. This one park allowed me to retire early.
@Roger D Jones I think you just hit it out of the park with your last sentence. Even though it may require more work overall, it is incredible that a single investment can create enough income to retire.