I recently sat down with a mobile homeowner in San Diego who to say the least has had some very bad interactions with the management and owners of the park; from what I have been told resisting park rules excess people living in unit, and from the owner the fact that he replies to there requests by attorney does not seem to help anything. He has already moved out of the mobile home due to an agreement between management. Park management is reluctant to share information regarding possible liens, back taxes, back rent, . Stating "That's between our attorneys. Submit the application and we will go from there."
He is ready to sell but according to the mobile home owner management has been denying everyone who puts in a tenant application making it impossible to sell. Both the owner and management do agree that there is a check list of items that must be completed to sell the mobile home. The mobile home owner who is very sour about the entire event does not want to complete the check list (seems like mostly out of spite) but he is definitely prepared to sell.
I have already submitted my tenant application due to my 9 to 5 income I am more than qualified to be a tenant. (so we will see if they are really throwing away these apps or giving them a fair chance.)
Solution- Be approved as a tenant, get the check list completed, become a tenant, make improvements and sell unit.
Any advice would be appreciated.
If the park management denies my application what is the best option for challenging there decision? Is there a way to find out if there is back rent/ taxes owed?
Move on to another park. Park management is god-like in these maters. They have the right to say no for any reason, including personal gain.
Your story is exactly why I don't recommend to beginning investors to buy mobile homes in parks. What was once a doable rent management situation can turn around over night and the mobile home owner is stuck paying lot rent, yet can't rent their home, nor sell it. It's possible to loose the home to the park who's locking out your renters...
There has to be many other less tense situations where you would enjoy living. Why willingly jump into that mess?
Yes @Curt Smith I suppose your right, but do to comps selling in the same park to this unit even as is are at $69,000 and updated are selling $125,000 +, this is in a desirable part of San Diego where homes sell for 500,000+. So I can clearly see the park management holding it for there own gain.
Purchase price of $24,000
Rehab of $15,000
ARV of $100,000 conservative
The #'s are very enticing
Just saying the park management could squeeze you and you'd loose your entire investment.
We see this in GA all the time. Very preditory. The poor owner occupants try to sell. Their purchasers are renters are denied. They are forced to walk and leave their home up for abandonment repo by the park. Couldn't be a worse situation.
Some lonnie dealers (what you are describing) are doing ok, but IMO the business model hangs on a thread and good luck. You are seeing it in your parks management.
Thanks @Curt Smith I definitely appreciate you taking the time to reply. I will at this point see if there is any willingness with management then probably walk. Because it is definitely in there interest to take this unit. and with the owner out of the unit unable to rent his hand has definitely been forced.
I'd probably advise staying away from this investment/headache.
That said, if there is another park to which you could move the home, that might solve all your problems. If it were me, and I were a competing park owner with a vacant pad, and someone like you came to me offering to move-in a home and rehab it, I'd say 'yes.' I might even help you pay for the move of the mobile home.
Your mileage may vary,
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