Posted by Sailor on August 07, 2005 at 22:00:51:
Lonnie is holding a 3-day Boot Camp next month in Asheville. The info is posted on the Mobile Home Group. He is offering a very special rate for Early Bird registrants, & an even bigger discount for those who pay by money order. What is really exciting about this class is that we w/spend one day in the field inspecting MHs & parks, viewing them through Lonnie & Tony’s eyes.
I sent my money in last week–
Tye
My MHP, rent owned homes or sell - Posted by Jim (DE)
Posted by Jim (DE) on August 07, 2005 at 21:13:29:
Hello All,
I own a 37 unit MHP and I also own 23 of the units. I currently rent the units because average lot rent in the area is $275, but I can rent the homes on my lots for 650 - 700. The demand is strong for the rentals, but… the maintenance is killing me.
I’m looking for some input of owner financing them. I have the Lonnie books, but I hate giving up the income and rent increases. Just looking for other thoughts.
Many Thanks
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:
Jim,
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.
John Corey
Chelsea Private Equity LLC.