Evaluating the Potential of Park Owned Homes
Park owned homes, sometimes termed as POHs are not bad. But they all aren’t good either. Let me explain.
Working with Triad Financial’s COP Program
I’m not opposed to communities with park owned homes, maybe because in my previous life I sold mobile homes. If a home or homes come with an acquired community, I don’t think selling the homes should be all that intimidating. Utilizing the strategy of working with Triad Financial and using their COP program can be very helpful. The COP program (community owners’ program) allows you to be the investor and in turn Triad services the loan. The COP program helps mitigate issues surrounding consumer notes and allows owners to focus on managing the real estate. I prefer this over the 21st cash program which requires the community owner to hold recourse on the resident’s loan.
Dealing with Homes that Require Demolition
Now let’s talk about the homes I don’t prefer. They’re the ones that need to be demolished. Demolition costs around $3,000-$5,000 for mobile homes. And it’s not always easy to find someone to do it for you.
Unlocking Higher Rental Rates through POH-to-TOH Conversion
In short, there are solutions to mobile home parks with park owned homes. If they are included with a sale, you don’t have to run from it. You may find it’s an excellent opportunity to get higher lot rental rates by converting POHs to TOHs (tenant owned homes). But I’ll talk about that strategy at another time!