Small rental Park…Brainstorming Exit Strategy - Posted by Briton (IN)
Posted by Briton (IN) on May 09, 2007 at 23:54:26:
Bought a small 8 Unit park in December. I have since gotten into some better investments and I am already thinking of exit strategies. Here are the facts.
7 lots have parked owned homes all rented out at about $400/mo
1 lot is empty but I am hoping to purchase a home for it on Friday. This home would cost about 10k moved and set up.
Expenses are fairly high because I do not do many repairs myself.
*all 8 homes are on 1 acre. So it is very packed in
*payments are $977/mo for 15 years
I do not want to keep renting out 8 units and deal with the management time of doing this. Exit thoughts:
*sell of the homes Lonnie style
Problems with doing this:
the homes could get moved out. Many of the homes are vinal/shingle and would prolly be worth more elsewhere. So “someday” they could get moved.
the homes may not sell for much. This is a small park in a lower class small town. The park is 8 lots on 1 acre! So I do not know if “home owners” would pay much for a home in this park.
Advantage of doing this:
LOWER EXPENSES for the term of the Mobile Home note. Therefor I could take the MH payments and put them directly on my park loan. If I could get $50,000 for all the mobile homes in the park I could get my park loan down to like $40,000 withing 4 years or so.
If I did this I would make lot rent a cheap $150/mo and have about $1200/mo coming in with a small %40,000 loan and hardly any expenses.
***My second Exit Idea is to sell the park.
I would keep all the homes park owned and sell. I would have about $130,000 in the park and all 8 homes at that point.
I would prolly put on the market for $150,000 or so and see if it sells. If it does not I can keep grinding about on my loan until it sells.
Bottom line is it is a good investment but not worth my time. I ended up getting involved in a larger investment only 2 month after purchasing the park and would rather loose the stress factor.
Would love to hear thoughts!!