Lease now and own later-Mobile Home

[Ram B.]

Hi All,

One of MHP(Mobile Home Park) owner has given a option to lease the park with 20% down and buy anytime within 2 years option. Right now I have problems in getting Finance as I am a international user. Later I may get it from private lender/bank.

MHP Sale Price-175K

Gross Rents -25K

In this period:

1) I can develop the park(get repairs done to 4 MH and/or get new homes-licenced for 20 more etc)

2) Collect all the rents

3) Pay them monthly lease-$1000

I am just wondering the pros and cons of this deal. Experts please comment. 

Thanks,

Ram

[Celeste Fackrell]

If the rest of the diligence works out, I wouldn't be afraid of it.  Although not international, I am several hours away from the small park I own and it works great for me.  I went through a couple of people but I have a manager in place that is responsible, takes care of tenants, does small repairs, and runs the park in my absence.  I pay him more than I would typically pay a manager, but in return he takes good care of my park, homes, and tenants.  My "over-payment" is small compared to my piece of mind.

When asked, he "walks" me around the park using a video link so I can see the condition of the park anytime I want.

I go to my park once a quarter roughly, and usually then only because I feel like I need to; not because I actually need to.

If the numbers work, and the park is viable, make sure you save some time and money to find the right manager(s), and best of luck!