Posted by Cheryl Lopez on July 07, 2004 at 21:58:48:
The original poster Ken asked what other FACTORS than just rent income to consider for placing in his newly purchased 6 unit park with 2 vacancies.
First response poster was from an appraiser that had an excellent comment based on his professional appraisals of park for value. We all need appraisers when buying and refinancing.
I gave my working opinions based on my professional experience in listing and selling mobile home & RV parks. I know what buyers and sellers want in parks. I just had a small park fall out of contract because the other partner DID NOT LIKE THE 2 SINGLE WIDES … preferred double wide like in their other park. So now my seller’s park is back on the market and we have to find another buyer.
Comments from working mobile home rehab people
Comments from park owner
Great … with all these comments Ken should have some idea what now to do with the 2 vacant spaces.
Posted by Ken Lackey on July 04, 2004 at 20:51:02:
I have just purchased a 6 unit mobile home park.There 4 homes I own and 2 vacanies. I have other rentals but I am new to mobile homes. Which should I put in the vacanies… single or double wides? It appears to me I could get almost as much rent from a single wide. Are there other factors to consider? Thanks
Posted by scottwhite on July 06, 2004 at 16:13:38:
i am a real estate appraiser in sc, from our standpoint values on doublewides are much higher than single wides, there are virtually no lenders left who will loan money on singlewides, so therefore a park that has only singlewides has little equity as far as lenders are concerned. doulbewides have a greater appeal and have a more “house-like” feel. so go doublewide if possible, however, youll pay more for each unit as compared to same number of singlewides.
it it was my park, I’d look at - Posted by Marty (MO)
Posted by Marty (MO) on July 05, 2004 at 23:19:22:
buying a couple of 16x80 3/2s. Are you doing these section 8? I don’t own a park, but I have done several Lonnie deals and do have a rental. The dw’s are easier to fill, but the potential headaches are definitely much larger.
If someone asked me about land/home deals, I’d definitely advise them to go with a dw, but if I had a small park like yours (I’m so jealous!), I’d look at keeping it simple.
Good luck and please post what you decide to do and why.
Marty
Posted by Cheryl Lopez on July 05, 2004 at 12:14:31:
KEN –
What are you basing your comment “It appears to me I could get almost as much rent from a single wide.” ??
What are other parks renting single wide & double wides for?
I would also look at:
Double wides you will be improving the appearance of YOUR PARK versus just having single wides. Which in years to come you want to sell YOUR PARK and at that time will generate a higher sales price !! Especially with only 6 units in the park … every little bit does help.
Double wides will have less vacancy factor, easier to rent, and should yield a higher rent income because more spacious, possible 3 bdrms, 2 bath floor plan.
Re: it it was my park, I’d look at - Posted by Cheryl Lopez
Posted by Cheryl Lopez on July 06, 2004 at 17:18:43:
MARTY –
Please explain your comment “… but potential headaches are definitely much larger”.
My observations were from the stand point that the person was asking about a park he was buying. So from buying and fixing and re-sell would be different than improving your own park.
A agree with Scott an appraiser on his valuation that double wides would increase the overall value of the park … and that is exactly what any park owners is looking for!
Posted by Beachboy-GA… on July 05, 2004 at 18:40:10:
yea DOUBLE WIDE… I am rehabbing a single wide right now for resale.Financing is harder to get on a single wide also…for fha financing now you have to have a double wide with masonary underpinning,IE cement block, , but you can make money on mobile homes… In some cases fha will d singlewides, but they are scarace. see my post below, the best deal I"ve ever done on a mobile home
Re: it it was my park, I’d look at - Posted by Marty (MO)
Posted by Marty (MO) on July 07, 2004 at 21:38:16:
around here, the small parks are little money machines. they’re not really about image or impressing an appraiser, the way a corporate park may be. the costs of moving and setting a dw are significantly higher. disposing of a dw is also higher.
I think I’d want a low cost, low maintenance park that generated maximum income- that’s why I commented the way I did.
Take care,
Marty
Posted by Greg Meade on July 07, 2004 at 07:32:12:
who cares what the value of the park. A 16X80 3/2 s/w will rent for 150 per week in my park in fl. a 24 X 52 3/2 d/w will rent for 150 per week. It cost me 17k del and set for d/w and 11k for s/w. They both have about same sq. ft.
My last mhp appraisal, they used income approach to establish value at my Bank. did not see4m to care if s/w , d/w, old or new. I like s/w for rentals…and d/w for l/h packages where financing is a realconcern.
Regards,
Greg