Re: My MHP, rent owned homes or sell - Posted by John B. Corey Jr.
Posted by John B. Corey Jr. on August 09, 2005 at 12:40:21:
You need to sit down and do the math.
Two things are likely to jump out.
The difference in income from a Lornie style note vs. the rental income is not much. Definitely less so when you factor in the maintenance and other costs associated with renting (which go to zero when you hold the notes).
Second, your time and expertise might be better spent finding another park that needs turning around or otherwise applying your knowledge and skills. The upside from such a conversion is a lot greater then the upside from next years rent increases.
Now, if you like staying close to your MHP and are the type who likes to do the maintenance then recognize this is a lifestyle choice and be happy. If you want to do less maintenance on rentals and want to branch out a bit then look at the numbers carefully before falling in love with annual rent increases. BTW - the space rents can still go up annually so maybe you can get your fix by owning more spaces and fewer homes.
Chelsea Private Equity LLC.