Changing from park owned to lot rental

[Bobby C.]

Hello all,

I am looking at an 11 unit MHP in North GA right now, waiting on my offer to be accepted. The homes on it are very old ranging from 1959-1985. I can replace existing homes with a like kind property, but was wondering since the Dodd-Frank act, how would I go about updating the area, and having more of a pride of ownership tenant?

It will be fairly cash intensive to replace the existing ones, and I would have to do so slowly.
Would it be better to move and destroy the existing homes as I go along and market for just the lots, or buy existing homes and move them on site and then lease to own? I will be speaking with a Real Estate attorney about this, but would like current MHP owners advice as well.

Thank you for any help!

[Josh McCullough]

Either fix up what you have, or scrap and bring in homes yourself.  Get the biggest homes you can legally put on your lots.  3/2's will bring more money than 2/1's for an example, and your lot sizes and septic tank sizes will determine how large the home can be, and how many beds/baths it can have....thats how Hall Co works anyway.

As the new owner, you set the new standard for park appearance, and do not renew leases for the folks who are not on board.  Have everyone sign new leases and park rules, and hold them accountable.

As far as updating some homes: A good pressure washing job can go a long way.  A good paint job can go even further for appearance.  New skirting for some homes...look into using metal roofing material.  Its cheaper, and more durable.  Spray roundup around the homes and other fixed objects keeps things looking neat.  Kool Seal your roofs...each roof will require about 7 gallons, and you can put this on with a paint roller.

I wonder if the park is zoned for any long term RV's?  You could remove the worst homes and advertise for a long term RV resident.  Charge them $350-$375/month with all utilities included.  Do this until you've got the cash to bring in a nicer home.

Anyways, I hope you can take something from my random MHP tips.