Updated over 6 years ago on . Most recent reply
Gifting Trailers to Tenants - Any advice?
Hello BP'ers -
We are currently underwriting a mobile home park with all park owned homes.
>>>The homes are in bad shape and the repairs line item eats 1/3rd of the Gross Income!
Does anyone have any tips or experience in 'gifting' the units to the current tenant?
We thought of rehabbing some units then selling them on the open market. They are prehud homes and in need of a lot of repair and thought maybe gifting would be a quicker route to reducing this repair line item + current owner pays water, trash, and sewer!
>>>any comments are welcomed and appreciated,
Ken
Most Popular Reply
@Ken Buck I like the idea in theory. My gut reaction would be not to do it. People who get things for free never have any personal investment/buy in with it. This might cause a struggle with value in you other homes. The new “owner” would have no personal ownership really.
If the person is also cash poor, they couldn’t afford the fixes it would need anyway and then you are adding dilapidated properties to your area. I would ask myself what kind of clientele am I wanting to attract or keep? Anyway, just my 2 cents. Best of luck!