Posted by Chuck (AZ) on June 26, 2001 at 08:55:57:
Yes, the smaller lots could be a liability down the road. The options are…
Replace the older homes with larger/newer ones, which would occupy more than one lot. This will most likely result in decreased revenue (fewer lots to rent).
Place “park models” into the same space as is currently occupied, go for the Senior market.
Convert to a RV Park (not likely in most cases).
Rip everything out and build apartments.
Personally, I’d go with #2 (easy conversion, less hassle, good tentants) or #4 (larger investment but greater return). The same space that would hold 50 MH’s would hold about 200 single-story 2bd apartments.
I have a 55+ park with a few RV lots left in it. I’ve decided to convert these lots to MH lots, but I’m having trouble finding smaller older homes to place on them. The lot sizes vary, making the task all the more difficult.