Thanks Tony, Shawn, Bernd, and BB… good info!!! - Posted by Auctioneer
Posted by Auctioneer on July 28, 2011 at 08:17:34:
I will follow up on these leads today. My property mgr will be impressed as I wrote the above from her laptop at her desk. We were stumped and I told her that I knew just who to ask!!!
To clarify a little bit. I am in TN. The MH I speak of is not in my existing MH park. I bought 6 lots in a rare MH subdivision at a Bankruptcy Auction for $1600 a pc. We closed last Sept. They are in N. GA which is about a 30 minute drive. When I bought them I really did not have a plan for them, but I felt reasonably sure based on experience that I’d figure out a way to make money. It turns out that I sold 3 of the lots right away (Oct) for about $7000 a pc with 6k down and the rest financed for 5 years at 7.5%. As of right now I have recouped all the cash I invested for all 6 and continue to collect P & I. As for the remaining 3 lots - No, such luck. One of the remaining lots is not very good due to setback regs. I will be lucky to put a 50 footer on it. I’m not really sure but I’m thinking of moving a 40’ fema unit on it and selling the camper (not considered a MH) and collecting lot rent. I would save a tremendous amount in moving and setup.
The other lot is the best of the 6. I had sold it but the neighbor has always treated it as her extended backyard and convinces buyers that it is not a good deal. I’m fine with putting a rental on it. Not out of vengence, but I’m sure she will wish she could reconsider my offer to her. I’ve kept the relationship favorable despite her running off my buyers. I guess she thinks that I took down the sign and plan to do nothing with it forever. Who knows…
In a nut shell, I decided to put a Lonnie deal together and collect lot rent but no good prospects. However, we did rent it in no time to a very qualified family that may be buyers down the road. Hence, I have my first MH rental collecting 500 a month. Not a bad return!