Re: HOW SH-TTY IS TOO SH-TTY? - Posted by Dan (NC)
Posted by Dan (NC) on December 07, 2000 at 20:21:17:
I’ve asked myself that about the Raleigh market, and I’ve concluded that there is a limit in this market. It is partly due to the MHP’s wanting to upgrade out of the junkers, and this means for the Lonnie dealer that you may be at the mercy of ARC and Uniprop management. They’re dominating our market right now, having bought up most of the larger parks in the last several years. Also, lot rents are relatively high in the Raleigh area, which may induce buyers to lean towards newer, more expensive, well maintained homes. Who wants to pay $325 a month for lot rent and live in a dump, especially when all the neighbors have new doublewides? Now just down the road, lot rents are in the $125 range, and there you’ll find the older homes in poor condition. Finally, the Raleigh area enjoys high employment and the resultant higher wages, so people can afford and expect to pay higher amounts for housing, but with the parallel expectation that they will get something decent. Sure, we have our slumlords (who until recently weren’t even required to have heat in their units) but that’s a tough way to make a buck. I vowed when I started that I wouldn’t have to carry a gun to collect my Lonnie payments, but I know several investors who do. So like the others have said, it depends on local conditions, and also what you’re willing to put up with.