For anyone interested in responding, especially those who focus on buying and holding mobiles on land for rental,
-are you seeing an average number of bargains, above average number, or below average number, compared to a year ago, and what are you doing about it?
Me: I am just bginning to see an above average number of bargains and with a strong rental demand in my market I am beginning to put cash to work. In my opinion we could be entering a golden age for the landlord. I have begun to get excited.
Tracy, this is a good, relevant topic. The Manufactured Home industry is in transition and will continue to change during the next 10 to 20 years. Toby Keith’s ‘Trailerhood” is passé; and so is ten to fifteen- year- old ‘wisdom’. In the past few years, Ashville and Texas had very similar costs of homes, of renovations, of rents. In my area :
- Bargains in homes, or land-home packages, occur but are not common. I use the 2% rule when purchasing a land-home package. For instance, if I can demand a $500.- or more rent, then I am willing to pay $25K for the property. It has been a viable criterion for me.
- The availability of foreclosed homes, to be placed elsewhere, has substantially diminished and their prices have increased also.
- Land, or lot prices have remained relatively stable,$8K to 12K per lot on sewer and water.
- The costs of moving a home, placing and renovating ready for occupancy has increased by about 25% since 2010.
- Rental demand has been and is still increasing. However, the demand for land-home units is the preferred accommodation, much to the chagrin of the park owners with the old paradigm. Also the quality of tenants seems to be improving, although we have not increased the rents, as yet. I would like to see two or three acceptable applicants for the same home at the same time.
Your suggestion of a ‘golden age for the landlord’ is not farfetched. As economics and demographics are changing, the so-called American dream of home ownership may become a new standard of life-long quality tenancy. A quality land-home, especially with a dw, in a good location, should hardly experience a vacancy. The only serious risk to this outlook is the European fascist- style rent and rental controls, which our government might or might not initiate. In such an ominous environment, any competitions will also decline. Like you, I put my money where my mouth is.