Sue,
I didn't purchase the MH I mentioned in the original question. Instead, I purchased one in a different park for $1000. It was a wonderful experience. First off, I insured it with Foremost. No problem but it was in my name as the owner. I then spent the next 9 months commuting the 40 miles to work on it, 7 days a week. I'd thought it would take 2 to 3 weeks. After the first rain, I realized I had a worse situation on my hand than I'd realized. I'd thought I'd done a good inspection but the real problems were hidden in a fake ceiling where one leak was and around windows and a sliding door that had been installed without any protection from the rain. The more I looked, the more I found. I ended up doing a total remodel with new windows, doors, plumbing, electrical, heating, flooring, and kitchen cabinets. I ended up spending $35000 on it. I didn't use the insurance - not sure if I could. Then I sold it for $15000 and financed the entire amount. I believe I got about $10000 out of it before she skipped out. It was still in excellent condition. So I sold it again to a neighbor to the property for $15000. This buyer paid full in cash.
I let the insurance company know about my arrangements. They had no problems with it and are still insuring it to the last buyers.
As to the park policy. I ran into a problem with that here as well. They refused to let me rent the MH. I wasn't able to find any park that would allow that. Since I spent so much time at the park during remodelling, I got to know the park employees and administration very well except for the actual owners who were in another state. The owners laid down the law. The administration seemed to realize that what I was doing was good for the park and helped me as much as possible. They helped me find buyers, let their handymen help me when needed, let me go through their stacks of parts for roofing etc., mowed my lawn. When the park owners came for an inspection just before I sold it the last time, they told me that I needed to do some expensive work to bring the MH up to the "park standards". The administration never pushed me to do the work which was "cosmetic" and I sold it as it was.
Ultimately, by doing owner financing, it was little different than if I'd bought it and rented it out. The first owner looked at it as less expensive rent. The only thing I found uncomfortable about was having to pay lot rent while renovating, not knowing if I'd be able to sell quickly or if the park owners would create more difficulties.
Would I do it again? No but only because I'm too old and my other investments are providing enough that I don't need the money I could eventually make on MHs.
I would highly recommend younger people to do this, though. I learned so much doing my first, with all of it's difficulties, that I've got a pretty good idea how to do it to actually make money and provide good housing. Personally, I would never do it by just buying cheap and selling high without making improvements. I've no interest in that.
