Getting Stuck with lot rent? - Posted by JB

Real Estate Investing Mobile Homes & Mobile Home Parks
#1

Posted by Ruben (KCKS) on April 22, 2007 at 08:40:40:

3 months is what I have found to be a good number when factoring in hold costs in my area during the Spring and Summer. In the Fall and Winter that number goes up. You need to learn your market and see what works for you.

Ruben Flores

816 918-9041

#2

Getting Stuck with lot rent? - Posted by JB

Posted by JB on April 21, 2007 at 22:24:55:

Do you guys ever have problems getting the mobile home park mgr to work with you so you dont have to pay lot rent when its vacant? Just curious how to handle this if they wont play ball. Trying to get the whole picture before jumping in face first :slight_smile: Thanks guys.

JB

#3

Re: Getting Stuck with lot rent? - Posted by Ruben (KCKS)

Posted by Ruben (KCKS) on April 21, 2007 at 22:53:46:

Free lot rent is very nice but if you can not get it just factor in the cost of the lot rent into your purchase price. Here is what I mean.

Your plan is to have no more than $4,000.00 in a home. One park offers you free lot rent and the home does not need any rehab so you can buy the home for $4,000.00.

Now in another park the lot rent is $300.00 a month. You can not get any lot rent free so if that same home was in that park you need to buy the home for $3,100.00 which is your max price of $4,000.00 minus 3 month of lot rent at $300.00.

My first park gave me 6 months free lot rent and was a nightmare to work in. My current pet park has only given me 1 month of free lot rent on 1 home and I have purchased 11 homes in that park. While I would really like free lot rent and am working towards that I still only buy homes that meet my number by backing into that number using all of my estimated costs for purchase, hold and rehab.

If you have not read Lonnie’s books at least 2 times I suggest you do so and this all will become much clearer for you.

Ruben Flores

816 918-9041

#4

Re: Getting Stuck with lot rent? - Posted by JB

Posted by JB on April 21, 2007 at 23:16:56:

Thank you so much for the detailed anwser. Im impressed, just curious how you came up with the 3 months figure. Have a great night. JB