Seller Financing Park Owned Homes

[Logan M.]

I want to share a quick story about a community with park-owned homes. Many investors in this space avoid POHs but they can be incredibly profitable.

In March of 2020, I purchased a community in a good area with 9 spaces and a single-family home. The purchase price was $600,000.

After about two years I started selling financing the park-owned homes to the tenants. The range of payments for the seller-financed homes is $2,000-$2,330 per month. These are old homes, built in the 70's.

This example is a true story and I've been doing it in other communities we own just not for so much per month. What I have realized though is that I create a massive increase in cash flow over about 10 years and get the park to a position where I am just responsible for the ground and utilities.