Moving from POH to TOH
I currently own two 50 unit mobile home parks and in contract for a third park. I purchased one of them from probate. Because of previous owners illness, the homes needed a lot of tlc to get back into lovable condition. Therefore, I’ve invested a lot of capital into the POH’s to get them back to what I consider livable conditions. The second park was basically a ghost town, but was completely filled with mobile homes. Together there were approximately 40 filled units out of 100. That number is now up to around 60 and I’m hoping to hit 75 by the end of the year. Park 3 has about 85% occupancy so I don’t see that one as a big issue, outside of being the majority of POH.
I am required to have a dealer/seller license to buy/sell more than 3 per year. I am already in process to get this license. I would have had that completed earlier, but didn’t know. Lol learning every day!
Here is my question. What do you believe to be the most efficient way to move the POH’s to the tenants to make them TOH? Should I do a mass move or spread them out over a year or two? Ive been spending about $2500-$3500 per home to bring them back up to par. As it stands now, there is a $250 spread between lot rent and POH rent. I plan to split the difference on the move from POH to TOH.
Any feedback would be appreciated.