All Forum Posts by: Roger D Jones

That is a very complicated hypothetical.  We do know that per capita income in the colonies was far better here than in England.  We also know that prior to the industrial revolution that individual wealth was driven by property ownership and that the cost of building a home was far less in real dollars than it is now.  To have a home you had to have property and if you were going to build a home it was usually a very nice home.  Those too poor to own property usually lived on the property  of others in shelters provided/rented or lived in rooms rented in the cities. 

Property drove personal wealth- hence the migration west during the 1850s.  It wasn't some great job with matching 401ks that put families into covered wagons just to fight native Americans... it was dream of property ownership.  I don't even think mortgages existed at that time.  

How that relates to a Founding Father's interpretation of a mobile home park is hard to say.  I would imagine they would look at it and ask why would anyone rent a tiny piece of land that barely has space for a home. 

Jon
Responded to your post on the other forum but thinking about it a bit more.  As I said... open a few tanks and check for backflow, visit the health department and ask a few residents if you can.  I have 22 systems in one of my parks and we have replaced three in 20 years.  We accept it as a cost of business and set aside funds for repairs as they come up.   We also pump all our tanks on a four year cycle.  Just part of our expense equation.  One thing to also kind of evaluate is how many family homes you have in the park vs single or elderly couples.  Families put a bigger strain on the systems than single residents and elderly couples.  Might calm you worries a bit.  

With regard to any drug testing I think a good, thorough understanding of both federal and state tenant law is in order.  

My understanding is comparison sales approach or income approach.

Comp Sales approach is getting comps from area and then carving carving 40% +/- off that price.  To use this approach though a bank has to be willing to finance it though- which is really tricky.

Income approach is take it as a rental income stream and apply a very high cap rate and take that value.  Told me double the park cap rate...

My MHP realtor pal told me this years ago so not sure if it still applies.  Looked at one park and told me to avoid it but if I did want to do it to carve it out on it's own plat then sell it off.  Cheaper than trying to sell it with the park at a discount.

Again this was all 15 years ago... so for what it is worth.  Harder to sell parks with houses on them.

Never really thought about it.

Any MHP dealer that you purchase your home through will get you started on the right track with subcontractors to set the home.  One thing to get in the weeds on though (and I am not the expert) is what type of foundation will allow the greatest financing options for prospective buyers.  I did one of these deals years ago and mobile homes were not considered 'real' property unless on a real foundation- at least that it my memory- and it could be flawed.  Also make sure your roof load matches the area of the country you live in.  Good luck and sounds like a great flip investment.

 Sherry, Don't walk away too quickly.  That seller attitude is exactly what you are looking for in addition to being family owned/inherited.  When I hear those comments I get increasingly engaged.  Just because someone is says they are frustrated having to manage something so much I can guarantee you it is because they are managing it poorly.  My number one park is 70% POH and I spend maybe 30 minutes per week engaged with it and make a great return.  Message me if you want some help evaluating it.  

Not a fan of ghost ads.  You have people actively and in many cases desperately looking for a home and you end getting their hopes up and then after not returning their inquiries we leave them disappointed and heartbroken.

Depends on how you structured the loan but I think you're gonna get 'clipped' by your bank.  How could you be selling a home only for lot rent?  Did you do it to just get out from under the maintenance?  

Homes are like cars with titles and they can be moved.  If the titles are still in your name... It may be ok.  If you start titles with those homes listed as collateral in your yet to be paid in full note I think you may have a problem.