I purchased two empty lots and put two brand new trailers on them. They have been available for lease to own since August but I have not got any offers any my real estate agent thinks we are competitive. If I structured these as rent to own, is there any resources or rules of thumb I can use? I clearly would like to get these to cash flow.
If rent to own or seller financing in your area with stick built homes have the same deposits and monthly payments, no reason one would want to purchase a manufactured home that loses value over time. With mobile/manufactured homes, it's all about the deposit/down payment and monthly payments. You need to make these more attractive than for a stick built home, in order to get offers. (Thousands less for deposit/down payment and hundreds less per month for the home). Are appliances included? If not, put them in. Would a backyard fence be good for family with small kids and pets? Talk to a mortgage broker about what parameters your stick built competition requires, and make it more attractive than those requirements. Also, if renting an apartment with the same amount of beds/baths would be more than what you could offer, that is your market. Send postcards to apartment complex renters that offer a home with more privacy, less restrictions, and something they can own vs rent. Also, Open houses are a must!
If rent to own or seller financing in your area with stick built homes have the same deposits and monthly payments, no reason one would want to purchase a manufactured home that loses value over time. With mobile/manufactured homes, it's all about the deposit/down payment and monthly payments. You need to make these more attractive than for a stick built home, in order to get offers. (Thousands less for deposit/down payment and hundreds less per month for the home). Are appliances included? If not, put them in. Would a backyard fence be good for family with small kids and pets? Talk to a mortgage broker about what parameters your stick built competition requires, and make it more attractive than those requirements. Also, if renting an apartment with the same amount of beds/baths would be more than what you could offer, that is your market. Send postcards to apartment complex renters that offer a home with more privacy, less restrictions, and something they can own vs rent. Also, Open houses are a must!
This is a really deep answer, I will have to work through everything you have suggested. Thank you.