Did 4 this month, to wit:
Bought a 2001 3BR/2BA 16x80 metal for $4,500. Will spend $2,000 to move it and $1,500 to rehab (needs paint, cleaning, appliances, some holes in walls patched, new skirting, etc.). Will move it to a park in a good school district that charges high lot rent ($335/month). The days it’s there with skirting, park hands me $4,000 cash and charges me & my buyer only $250/month for 2 years. That sort of house sells for $27,000+ in that park. I will probably sell for $2,000 down, note for $19,900 at 12% for $285.51 payment over 10 years. I will have my money back in 10 months, and have just over 9 years of $285.51 per month!
Bought an old 12x60 2BR in OK shape (needs paint, carpet & tile) for $500, paid $230 lot rent, sold it for $2,950 cash.
Bought an old 12x60 2BR in perfect shape for $2,500 and sold it for $5,000 cash, sold it before lot rent was due.
Got a 2BR 14x70 (trashed) for free. Put $2,100 in rehab & lot rent, sold it for $500 down, $185/ month for 4 years.
We are working on two stick-built rehabs (one took FOREVER) and have some rental units as well. These Lonnie Deals are a nice supplement, and taught me a lot when I was first getting started out. Cheap lessons!
In deal #1, why did the park hand you $4000? I understand that they are giving you a deal on the lot rent because you do a many deals there, but I couldn’t figure out why the gave you the cash.
Yeah I am wondering the same thing… also what is it you AND your buyer are paying $250 a month for?
Park is under new management. They got rid of a fair number of old, junky homes and have some vacancies as a result. The park where the 3BR is currently located is in the boonies and not well run, so I figured on moving the home. I asked the park manager in the target park if they had any incentives or programs to get homes in the park. He thought about it and then remembered…“Oh, yeah, we do. If you move an acceptable home in, we will cut you a $4,000 check when the skirting is on and drop the lot rent to $250 for 2 years”. Talk about an outfit that’s serious about filling lots! We will be looking for nice 14x70 3BR’s to move in. That rebate gives us unusual flexibility on the buying end and the lot rent cut makes selling much easier. Just goes to show you: Never hurts to ask!
Ok that makes more sense now. Also that means YOU AND the buyer don’t pay $250 a month just the buyer, right?
One of pays $250/month…it’s on me until we get the thing filled, at which point it’s on the buyer.
Sounds like a winner! this last park I visited that is the NICE one is totally full and they are looking to get rid of all the ugly ones, though they haven’t said no to metal roofs yet. Seems the mgmt companies/owners dictate that corporate wide now a days unless privately owned. This one is owned by ARC and the lot rent is $400/mo.
i dont get it… why would a park owner drop 4 grand into your lap? on top of which they reduced their lot rent to 250/mo… reducing their net on the lot to about 85.00/mo for the first 2 years? are parks in your area THAT desperate for homes? i mean for that price, tehy could have let it sit vacant for 16 of those 24 months and made out just as good… am i missing something here?
what state are these parks in? i’m lookin in the Pa.& NJ. area. and after reading your post i cant wait to get out there and score some deals. good luck in the future.
your fellow mh investor