Posted by Don on December 20, 2004 at 21:49:37:
I own 3 parks. Started out renting spaces. When the market tanked in 2001, the new homes stopped coming. Then the repos started. I buy every one that comes available. I’ll rent them for 10 years then do Lonnie Deals on them all!
Is anyone just renting out there homes? - Posted by Chris
Posted by Chris on November 30, 2004 at 20:17:01:
Just want to know if anyone is renting instead of selling
and how well it is working out for them after paying lot rent and insurance plus any repairs.
I live in Florida and there are a ton of deals but the whole licensing requirements in this state really scares me and I don’t want to do anything to get in trouble.
Any input would be appreciated.
Thanks for a great site,
Chris
Yes, I do, but it may not be recomended for… - Posted by Dr. Craig Whisler CA
Posted by Dr. Craig Whisler CA on December 02, 2004 at 12:16:10:
…newbies, simply because it is much more capital-intensive than flipping. You need more cash to begin accumulating rental properties instead of selling them.
Newbies with limited capital would be well-advised to do either Lonnie deals or land/mobile deals but to use later model, nicer, 3b, 2 ba, mobiles and put them on FHAable foundations. Then Flip them for all cash. Your workload will be greater this way but when you are young you won’t even notice it. Later as your capital, and lazieness grow it would be better for most of us to switch to renting mobiles on land. The reasons are manifold. First, your rate of return on capital will often be lower with rentals (if they are free and clear) but your profits don’t necessarily have to be because you CAN use leverage for some of your rental properties to increase yield. With land/mobile rentals you don’t have to spend the rest of your life replacing Lonnie-style flip deals that run out of income stream after a couple of years. Thirdly you can hire some professional management and just kick it for the rest of your life and do what you REALLY want to do with your time.
In my case that means buying more properties but in your case you may want to sit on the beach in Tahiti with a cool one and perhaps a hot one, or whatever.
Sometimes life can be a real Beeeach, can’t it?
Regards, doc
Re: Is anyone just renting out there homes? - Posted by Chris and Liana
Posted by Chris and Liana on November 30, 2004 at 22:18:27:
Chris,
I agree with Tony, Ernest Tew’s material is a gold mine for this kind of problem. I’ve used the triple net lease in NC and it was one of my best deals, They even paid me off early.
Chris(Ga)
Re: Is anyone just renting out there homes? - Posted by Tony Colella
Posted by Tony Colella on November 30, 2004 at 21:05:25:
I rent my mobile homes but only when I own the land. This is a bit different scenario than renting mobiles that are located on land owned by others (either single lots or mobile home park).
Living in Florida, you might want to look into the archives and the material sold here by Ernest Tew. He has a lease/option system that essentially rents (with the tenant responsible for the repairs and maintenance) until they can buy outright. This may be what you are looking for if your parks will allow it.
Helps on taxes and evictions as well.
Tony
Re: Yes, I do, but it may not be recomended for… - Posted by JP_FL
Posted by JP_FL on December 03, 2004 at 05:22:03:
What constitutes an FHA foundation…in Florida?
Does it differ from state to state?
Thanks
Duh! I don’t know. - Posted by Dr. Craig Whisler CA
Posted by Dr. Craig Whisler CA on December 03, 2004 at 11:45:43:
Ask a local FHA lender. They should have a 2-3 page printed list of specifications, the completion of which, must be verified, before they can make an FHA loan on the property.
Because some areas have extreme cold weather, flooding, landslides, storms, earthquakes, etc. it seems reasonable to me that the FHA specs might vary from area to area to suit local conditions.
Regards, doc
Re: Duh! I don’t know. - Posted by Rebecca
Posted by Rebecca on March 09, 2005 at 08:04:11:
I need some help. I am trying to find the specifics on the FHA guidelines. Do you know where I could find this list. I am starting a new company and I need the FHA specs and I have no clue where to obtain them.
Thanks,
Rebecca