Philadelphia, PA · Member since 2010 · 64 posts · 34 votes
I had call today from executor of estate in need of selling her father's mobile home. I originally considered the option of buying it for a rental, but the park has an owner occupant only policy and lot Rent of $600/mn. Rent, (if I could rent it) would be around $850/mn. So not sure if it's worth the hassle or if there are options that work well for owner occupant only communities.
Sell an undivided interest to the tenant with a revisionary agreement, collect rents on that interest not conveyed and the lot rent. Get a new title with the names of the owners on it, then the home will be owner occupied. Put yourself down as a lien holder but don't finance any transaction, if the rents aren't paid the revisionary agreement allows you to buy back the interest and retitle it. If you're a lien holder, no lender in their right mind would encumber title with just one party on the title. Take the title to the park manager if they need proof. Thank you, my bill is in the mail..... LOL
@Dan Bosak I have never bought homes in the parks for only owner occupants. Depends on your purpose of buying the mobile home. If it is for a rental then obviously you can't do that in that park. If you can purchase the home at a real big discount vs market price then it might be feasible. But being that lot rent is $600 sounds like it really kills the deal. $600 sounds outrageous for lot rent. Around here I am used to $200-250 lot rent and rents from $550-800. I think I sure would pass based on the lot rent price and the owner occupied only status of the park. Good luck.
Thanks Mark -- that's pretty much what I figured. I was hopeful that there might be some creative strategy that I was missing. I come across this type of deal every couple of months and don't want to just pass every time. Every park I've ever talked to is owner occupant only and lot rents in the $450-600 range so that seems to eliminate the options I knew.
Sales volume and price make flipping a bad option. Even if I sell it, the profit will be so low it's not worth the time and risk.
I don't recommend offering seller financing to facilitate the sale either. Dodd Frank aimed squarely at mobile home financiers to occupants.
Just advertise it in craigslist: mobile home in park. Nice home. Cheap. Bring what cash you have and get a nice home.
IE Sell it for what you can get and move on. There are no banks that lend on mobile homes let along homes in parks. It's a cash deal via what ever folks have in their pockets.
BTW most if not all parks require the sellers to run the buyer through their interview / check out process. They have the ability to kill any deal if they don't like the buyer.
Sell an undivided interest to the tenant with a revisionary agreement, collect rents on that interest not conveyed and the lot rent. Get a new title with the names of the owners on it, then the home will be owner occupied. Put yourself down as a lien holder but don't finance any transaction, if the rents aren't paid the revisionary agreement allows you to buy back the interest and retitle it. If you're a lien holder, no lender in their right mind would encumber title with just one party on the title. Take the title to the park manager if they need proof. Thank you, my bill is in the mail..... LOL
Search "interests in title", joint title, several types, you can simply be co-owners and reversionary agreements are agreements that allow for title or property to revert back to another in the event of some occurrence, reversionary deeds revert back to another owner upon the death of another or if terms of conveyance were not followed. Why I mentioned, see your attorney:)
Thanks all for the info. Based on the minimal potential profit, I am going to pass. If anyone wants mobile home leads in the south jersey area, let me know so I know where to send these type of leads