Here in North California, park rent is between $250 and $350, and the lot rent in MH parks increases about $5 every one or two years.
I personally would not go by what the MH Companies told you; I would go to a few parks in the area you want to work and talk to the park managers about rent, rent increases, utilities, and other expenses. For example there is a park in my area that will charge up to a thousand dollars a year for yard maintenance if the lessee does not take good care of it.
Posted by Zeke Lopez on July 31, 2002 at 18:45:16:
I am a newbie in the Southern California Market. I have purchased and read the DOW 3 times. I have started my research and found the following:
Lot rents range from $ 300.00 - $1,000.00.
Should I be looking at cheaper lot rents for MH purchases, because it seems like the lot rents could be higher than MH monthly payment.
I need some perspective on monthly lot rent increases. I called two MH companies today and they both said beware of hefty lot rent increases. If a MH buyer can fix his downpayment with me but has to worry that some day soon he will not be able to afford the lot rent…does this deal still fit the Lonnie profile?
Posted by Bob P.(Az) on August 01, 2002 at 10:34:54:
I still do a little business in the San Bernardino County area. The lot rents are from $285 to $400 depending on the quality of the parks. You can still buy late 70’s 2 bedrooms for under $5,000 unlike most other parts of SoCal.In the Park, I still use , my cost for a 2 bedroom is around $3,000- $5,000 and sell them for $7,500 to $10,000. The Park Manager and I have become good friends over the last 4 years otherwise , I would only be doing Lonnie deals on the east side of Phoenix, Az.
Although, I was successful in the California market, I chose to move to a more affordable area, Phoenix almost two years ago. It has been very rewarding.