The first thought that comes to mind in regards to turning renters into buyers would be Lease/Option. They current tenants may have trouble coming up with a large option consideration however.
You may also be faced with the challenge of overcoming the renter mentality. Chances are that all 10 will not work out but a few might stay and be worth the work.
Certainly the tax advantages of L/O over the Lonnie deal are something to consider as well.
I have an opportunity to buy 10 park owned rentals. All the homes are ?95 and newer in an above average park about an hour away. The park is changing ownership, and the new owners don?t want the homes. I would have the park?s permission to do whatever I wanted with the homes. What could I do with these? I would rather not have rentals so far away, but it?s an option I would consider. My natural first thought is to convert them to Lonnie Deals and sell them to the current occupants. Has anyone ever rolled a renter into an owner like this?
I?m going to look at all the homes tomorrow with the new park manager. Obviously, the price would have to be right for me to consider buying them. Just looking for some ideas to think about before I go.
Posted by Ernest Tew on July 03, 2002 at 11:07:01:
Karl, if you acquire the mobile homes, it is important that you first get a written agreement with the new park owner or manager.
I would ask for a lot lease agreement for at least five years and an agreement that no rent would be charged for at least one month in the event a tenant is evicted or otherwise moves out.
It is very costly to move and set up homes–even if you have a suitable place to put them.
Posted by ScottS(NC) on July 02, 2002 at 15:50:45:
Karl,
A thought that just crossed my mind is out of the ten renters maybe one would be someone who could basically manage the other nine for you. For this service they get there home paid for each month by managing the others. Or you could find a management company in the area that would manage them for you for a percentage. Maybe the park manager (if there is one) would be intrested in this? The tax benefits of rentals is great, try it if it doesn’t work then sell them lonnie style with no real loss. HTH Take Care ScottS(NC)