Re: MH’s…A few questions for the pro’s - Posted by Lonnie
Posted by Lonnie on February 06, 2000 at 08:39:10:
Supply and demand for the lots usually dictate the park policy. When there is a big demand for lots, as in your case, the parks can be real picky and some will take advantage of the opportunity to upgrade by kicking out the older homes. The reverse happens when there are plenty of vacancies. So you have a good and a bad situation.
If you?re the seller, the bad news is that since the home has to be moved, it?s much harder to sell, and a much lower price. But as a buyer, you can make some excellent deals if you have a place to move it to, and the price for purchase and moving is right. Keep looking for a park that will take the older homes, and see if you can make the numbers work to your advantage. But before you do, check with your Building/Zoning department to see what?s involved. You will need permits, inspections etc by the City inspectors. Also check with several movers for the cost of a move and re-set. In my area, the cost runs between $2000-$2500 for a complete job.
While buying one that has to be moved can be an excellent opportunity, I don?t recommend you start off doing this on your first deal. It can be very expensive, frustrating and time consuming. You could easily get turned off and discouraged. Get a few simple deals under your belt first and then see if you want to do it.
As for developing a park, I think you would be much better off to buy an existing park, rather than developing a new one. It would, or should, be much less expensive with a lot less frustration. Personally, I would never have the patience to go through with what it would take to develop a new park. Let somebody else fight City Hall, then buy the park when the owner is burned out or wants to retire.
Don?t let a few park managers discourage you . Keep looking until you find a manager that will work with you. You only need one park, one manager and one deal to get started.