All Forum Posts by: John Arendsen

depends on the size of the homes and the legal setback requirements. Also, it the home on a private lot/parcel or in a rent/lease park community?

Once again @Thomas S. I think you're missing my point. I'm not interested in building a Hippy Commune or anything along those lines. Additionally, most building and zoning debts will not allow an RV to serves as an "Accessory Dwelling Unit" (ADU). They want any structure that will be considered a permanent structure to be affixed to the ground and go with the land as real property so it would require a permanent foundation system. We've been doing thousands of these for decades with much success.

What I'm keenly interested in, however, are the many new and beautifully designed "Tiny Houses" from 400 to 1200sf for the use of granny flats on properties with exiting larger homes. I do agree that "Manufactured Homes" are too boxy looking and don't offer much in the way of eyeball or curb appeal.

For my purpose I'm seeking experienced designers, engineers, fabricators, marketing, advertising and sales organizations that I can network and/or contract with that can provide me with product and generate leads that my crews and I can contract, facilitate, expedite and complete on the literally hundreds of thousands of existing homes that meet the criteria for this. That's it plain and simple. Hope this helps.

Not familiar with your neck of the woods but I can tell you from experience that being an owner in absentia can be a challenge unless you have some form of local managements or at least maintenance. 20 spaces is indeed too small for an on site manager, however. So unless you're willing to make that 3 hour drive to change someone's water heater or have a midnight emergency with a senior citizen who's toilet took a dump I'd be looking for an experienced off site management/maintenance company to do your fetchin and carryin. Good luck.

Make sure the home is newer than June 15, 1976. Preferably circa '80's or newer. Then start with a home inspector that can also check out the infrastructure. If you like what you hear you'll have to step up for an appraisal. Then find out what banks/lenders do land home packages. You may need to put an engineered certified foundation under it if it doesn't already have one.

As a general & manufactured home contractor, former manufactured home dealer, and currently a real estate broker, developer, property manager and investor I surely don't think it a fad by any means, In fact quite to the contrary I see it as a fabulous growth industry. 

I would certainly do a lot more research @Thomas S. before painting an entire cottage industry (pun intended) with such a broad brush. Here's a couple of posts on the subject that may give you a little insight into this industry.

I personally am planning to jump into this industry with all fours in my geographical area as there are literally thousands of homes and properties with enough room to add "Additional Dwelling Units" on their properties. They make a great Granny Flat and there are myriad architects/designers, purveyors, contractors and developers that are getting involved with this industry.

Are there any "Tiny House" architects/designers, builders, factories, brands, contractors, or stakeholders on BP? If so could you pass their sites along?

There are Manufactured Home Communities (MHC's), Mobilehome Parks (MHP's), Trailer Parks, RV Parks and finally "TOILETS". Not to be too overly general and not knowing about the surrounding area/s I really can't give you an educated answer.

But going back to what I always consider the number one priority and concern is whether or not the park is in the path of progress or in a downtrodden and blighted area that people are moving away from instead of into. You mentioned the schools being across from some schools. This can be a good or a bad thing depending on the short and long term socioeconomics and demographics of the area.

If it's currently zoned as a MHP and your due diligence reveals that it's in the path of progress and the infrastructure isn't in too bad of shape then it might be worth pursuing. But do remember that some of the older MHP's have very low amperage i.e. 30 t0 50 amp output and most newer  MH's require up to 100amps. Also is the sewage old rusted out cast iron that needs to be replaced. 

Lot's of questions and concerns arise on this one. Sounds like a lot of MHP's I've researched and abandoned because they just needed to be totally scraped and redeveloped.  Just my 3 cents worth adjusted for inflation. But good luck and be sure you do a lot of due diligence.

Just answered via private email. However, for the benefit of others who may be looking into MH's stay away from any MH built before June 15, 1976 for a variety of reasons i.e. financing, carcinogenic and caustic chemicals, flimsiness and poor quality (built like a trailer).

In fact I'd stay in the circa '80's and newer as that's when they changed from being "Mobilehomes" to Manufactured Homes and were built to HUD standards which are like site (stick) built homes. Much easier to finances and sell.

Most importantly make sure that the geographical and socio-economic demographics are in the path of  progress. Lot's of older MHC's are in blighted areas and are slowly depreciating. It's not always about buying on the cheap. Cost is relative. 

If you're buying along the coast, on a golf course or in a resort oriented community you may pay more for the home but the value is there and much more desirable for potential buyers. Also if you're thinking about buying and holding to rent in a MHP rent/lease community be sure you get permission in writing from the owner/manager. Most MHP's will not allow sub leasing. Even in resident owned communities.

My first question is always, are the properties in question in the path of progress? Or are they in a blighted area with no future plans for gentrification? Sounds a little redundant but it really isn't. The issue being the age and condition of the MH's vs replacing them with new ones or site built. I'm always a little nervous about purchasing any Pre HUD MH unless it's clearly in a pretty good area i.e. resort, golf course, beach, lake, river, etc.

The worst thing you'd have to do, especially on borrowed money, is start incurring heavy maintenance and/or removal and replacement costs. However, if the land is worth the investment then you could probably keep everything just the way it is and hope that the land will appreciate enough to borrow against at some point so you could remove and replace the MH's with new ones or perhaps even "Tiny Houses" if there are no zoning issues. 

Hi Charles,

I would definitely be careful investing in MH's in MH Park Communities unless they are resident owned communities that allow sub letting which I assume would be your intention. Rent/lease MHC's have pretty strict rules and regs about sub leasing. In fact I know of very few that allow it.

Also stay away from Pre HUD MH's (built before June 15, 1976) as they are not only difficult if not impossible to finance, which I assume you'd want to do a some point in order to revisit your capital for forthcoming investments.

Most importantly be very careful about the location of the MHC or MH if on resident owned lot/parcels. While some MH's may appear very inexpensive in some areas there may be a good reason for it. If the MHC or MH is not in the path of progress or in a very blighted area I'd avoid it. The quality of your tenant pool would most likely be pretty sketchy. 

Personally, having been a general and MH contractor, developer, RE broker, investor and property manager for the past 3 decades I'm starting to look into "Tiny Homes" for future investing and development. It's just starting to get some solid attention from the California Department of Housing and Community Development (HCD). They regulate the MH Industry Statewide and it looks like they might be ready to let go with some favorable regs.

I recently posted a document from the HCD about it. Here it is if you want to peruse and consider this path. If you want to discuss this or any other aspect of the MH or investing biz please feel free to contact me anytime.

http://activerain.com/blogsview/4978526/could--tin...