Posted by greg on June 27, 2001 at 18:38:32:
Thanks Gene and Chuck. I always thought that the lots had to be divided for each individual MH. I guess it is obvious I’ve never bought the dirt before.
MHs and land–is this worth chasing? - Posted by greg
Posted by greg on June 22, 2001 at 21:39:09:
I came across a possible deal that involves 5 mobile homes on one lot. The property these MHs are on is in a college town and zoned for 4 plexes but not MHs (these are grandfathered in). The MHs are real old–mid sixties to '82 and are rented out to young married couples at rents ranging from $275-375/month…total rents $1600/mo.The seller wants $65,000 for the land and MHs. Where I live individual MH lots in parks are hard to find and generally sell for about $15000. The town is growing as the college is expanding.
I would like to figure out a way to charge lot rent and sell the MHs on a contract but I don’t know if this is possible where they are all on one large lot together. Could I charge lot rent even though they all share one large lot together? Has anyone ever run into a situation like this? How hard or expensive is it generally to try and divide larger lots into small lots for MHs?
Any ideas would be greatly appreciated as this seems like something that could be profitable if a creative solution is found. Thanks.
greg
Re: MHs and land–is this worth chasing? - Posted by Chuck (AZ)
Posted by Chuck (AZ) on June 27, 2001 at 15:03:27:
Your confusing the issue here Greg. It’s not that complicated.
From your description, it sounds like the mobile home rent currently includes the lot (rent). If you buy the property, you can change this in the blink of an eye.
Look at your local market, and determine a fair value for the lot rent (call some MHP’s without amenities and ask their price).
You’ll have to give the current renters the option to buy the home on contract. Some will probably bail on you. Once the dust settles, you can put your lot rent into effect.
It’s just that simple.
Re: MHs and land–is this worth chasing? - Posted by GeneNM
Posted by GeneNM on June 27, 2001 at 14:24:20:
Greg,
Just my opinion. As I understand it, mobile homes are personal property. Therefore the issue of the land being held as one tract has no bearing on the ownership of the personal property placed on it. It is like creating a parking lot and renting spaces on a monthly basis to individuals. As owner of the land, you are leasing space to the owners of persoanl property. Therefore you could sell the mobile homes on contract or lease, depending on whether you want to be a financer or landlord.