Trailer park owners.

[Shaun Stephens]

I'm considering purchasing a mobile home park that is developed, but nowhere near full.  There are about 30 trailers and 150 spaces. I've noticed most park owners I've met sell off all of the trailers and just collect the rent on the lots.  I know I'm going to have to buy more mobile homes to get it full and the park owns the majority of the ones in it currently. My question is why sell off the homes? I'm currently a single family investor and don't mind the maintenance for the additional rent. Are there tax implications I've not thought thru? What else am I missing? It will take a while to buy 120 more trailers, but what's it worth when full and I own them all. 

[Curt Smith]

I was just at the Birmingham AL Clayton homes mobile home show.  We have a park that needs 30 homes.

New financing is available from century 21, called the Clayton Cash program.   Bottom line:  covers 100% of the purchase of the home, hauling, installation, AC, everything.  Zero cost out of the parks pocket.  You will be finding a tenant buyer via your normal means but marketing for folks who want to be owners.  You qualify, then send them to century 21 who qualifies them and sets them up with a mortgage.  you collect lot rent.  We raise the lot rent above our prevailing lot rent for new homes in this program as a means to inching up the lot rent in the park.