If you own a mobile home park, you know that repairs and maintenance can get very expensive. This is especially true if your park is located in a harsh climate. Extreme cold and heat can wreak havoc on your water systems resulting in thousands of dollars in lost income and repair costs. It’s at this point when many owners may consider selling their parks as a solution to dealing with these expenses. Herein lies the question: Should I Repair or Sell My Mobile Home Park?
Fix the Issue Vs. Selling the Park
If you find yourself in this situation, there are a number of pros and cons to consider.
If you go ahead and make the repairs, you can increase the assessment value of the property allowing you to get more money when you do decide to sell. You can also raise rents to make up for the costs of repairs. Also, if you are handy, and can do the repairs yourself, it may not be as expensive as it would be if you hired outside help.
However, some tenants may move out due to the inconvenience of having the repairs done and the increase in rent that can come with them. Also, holding on to the property will begin to eat away at the value you’ve earned over years of ownership. When you consider this in addition to the amount of time and money it will take to make the repairs if you don’t have the skills to deal with them yourself, it seems as if selling is looking like the more attractive option.
Challenges of Selling
Now we know selling can be difficult as well. It takes time and you may not get the value you are looking for from buyers. But this doesn’t have to be the case if you sell to Mobile Home Community Buyers.
Mobile Home Community Buyers will buy your mobile home park wholesale, no matter what condition it is in. You get the highest value and we don’t work with brokers saving you $100,000’s in fees. All closing costs associated with the transaction will be covered by us and can work with you on a 1031 exchange that will allow you to avoid tax implications.
We know that the decision to sell can be a difficult one to make. Find out how we can help you get out from under the stress and expense of repair costs. We welcome you to look over the terms we provide to find a solution that works for you.