Re: buying a park - Posted by Ernest Tew
Posted by Ernest Tew on May 08, 2000 at 05:10:01:
You are correct. It isn’t necessary to rent an office when you could use a mobile home in the park.
Over 55 parks, especially in south Florida where we have a lot of retirees, can be a good investment. However, when buying you will have a lot of competition and should be very careful to avoid paying too much for it. Senior residents are usually good about maintaining their home and lot and paying their rent on time. With a lot of time on their hands, they are also prone to complain a lot about little things. A manager needs to have a lot of patience.
When buying an older park with small lots, keep in mind that, with today’s availability of financing, most mobile home buyers want to live in a large, modern, home. You need to consider whether a large home will fit on the small lots that are typical of older parks.
You might improve the income by buying the homes at a low price as residents die or move away and then resell them at a profit. Renting homes in a senior park might also be satisfactory. However, I don’t recommend allowing rental homes in a family park.