I've not bought in a MH park before but have been looking over the past 2 weeks. I've found a couple of potential deals. I've got a verbal agreement to purchase one MH for $1000.
Lot rent is $440. Owner has done some very nice things to the home. It's old but sound. And has work that must be finished before I would sell it. Owner was a contractor. He said he had an offer from the park but would prefer to work with me. It's a 55+ park.
I got a call from three park employees/owners? Each said they were authorized to let me do this this time but that their policy is to not allow investors to buy then resell a property in the park. They also emphasized that they don't allow rentals. One suggested that they look at seller financing the same as rentals. All wanted to make sure that I would be payiing the lot rent. One said they'd decided to let me do it because they were stretched right now with things going on and couldn't get to it themselves. One said that she would go by the MH to find out if they would require me to do some work (approved colors, replacing rotting steps, etc)
It's apparent that this is a larger, out of state (I'm in Oregon) corporation that owns a number of parks. I'm waiting for them to send me their application. I won't sign the purchase agreement until I get signed park approval.
My question is should I be concerned about this park attitude? Can they really say an investor can't purchase, rehab, and resell in their park? Are there any other things I should be concerned about with this deal?
My inclination is to do it and gain the experience.
Thanks for any input.
Hi @Harold Anderson , a park can stipulate in the rules and regs they only want owner occupied units. Some of the local parks around me do not allow any investors and parks like myself are very investor friendly. I would be wary but if you get it in writing that you will be allowed to rent out the home for x years I would say go for it. Sounds like the return is there.
@Harold Anderson Sounds like the park is trying to build a relationship with you which can lead to more opportunities. The key is to get to know each other to see if your personalities and way of doing business are a good fit to work together. Best of luck!
I wondered the same thing. Hope you're right.
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