So Looking and might put offer on a Mobile home park but half of them are owned by park not tenants. I rather not own the mobile homes should I do a rent to own on trailer for tenant or whats my options on this before putting in offer like I said rather just rent lot not trailers.
Either way should be a win. Lease options would be a great way to maximize your return on them while getting larger chunks of cash coming in immediately, but at the same they would probably more than pay for themselves in a relatively short period of time as rentals. I'd gauge the useful remaining life on the units and proceed accordingly.
The main issue is I rather not maintain the mobile trailers that's why I was thinking rent to own just rent the lot its on plus the park. I was just thinking of how to attack this offer I'm going to do with that in mind if I can convert there current leases to rent to own dont know if thats an option. I know Brandon from BP is big into mobile parks now too
You do not want to own the trailers as a strategy.
I would seller finance the trailers that way you don't have to manage any repairs and maintenance of the homes. Many mobile home parks just add this additional note payment on top of the lot rent payment, and it's still more affordable than renting an apartment. Hope this helps!
@Chris Snyder You can also look at selling the trailers for cash if the tenants are willing to buy them. Look at their payment history to get a clear idea of how they are as payors. Good luck!
@Rachel H. When you add the lease option to the rental payment of the tenant each month does a lender look at this as part of the Gross Rents when calculating the NOI? Or is this usually excluded?
@Phil Shearcroft Usually, they will only look at the rents being paid to you. Hope that helps!