You really should start with the park manager. You will have to fill out an application and be approved by them before you even make an offer on a manufactured home in a rental park
Be sure to have it thoroughly inspected by an experienced MH inspector and not just any home inspector as there are several nuances with MHs that you don't have in a conventional site-built home and most home inspectors not familiar with these nuances will not even know what to look for.
Make sure the inspector crawls under the home and thoroughly inspects each and every pier and pad assembly for rust, deterioration and decomposition if steel and for decomposition if concrete as homes close to the ocean can be severely impacted by salt.
They should also make sure the home is level by checking all the doors and windows to make sure that they are not swinging or sticking and that all the strike plates on the doors are properly aligned and the doors close soundly.
The inspector should also inspect the steel mainframe for rust and decomposition as well. I can't tell you how many mainframes we've had to repair that were suffering and in some cases even failing from rust and deterioration related issues.
Be sure and have the inspector check for rips and tears in the vapor barrier under the floor. If there are openings in this membrane it could allow the insulation under the floor to become compromised and even fall on the ground.
Openings in the vapor barrier are also a great place for rodents and cats to habitate and reproduce. We've eradicated countless critters from these cavities over the years and it's not a very pleasant experience.
Finally and very importantly make sure the home has a California State Housing and Community Development Department (HCD) certified earthquake resistant bracing system (ERBS) as most areas in California are classified as a Zone 4 earthquake area which holds a high probability of risk for a seismic event..
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Please feel free to contact us anytime at 800 909-1110; cell: 760 815-6977. Or email us at firstname.lastname@example.org.
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My intention is to purchase many houses. Each house after completion of the renovation and renting should produce a annual return of approximately 5% on the total investment.
A typical example would be a house (with 15-1800 square feet of heated and air-conditioned space) in a good Orlando Neighborhood. This house would conservatively rent for $1,300 a month or $15,600 a year. Cost of operation (management, Taxes, Vacancy, Insurance etc) would average approximately 45% of the gross rent. Therefore the house would net 55% or $8580 per year. If we are to acquire a 5% annual return this would require that the total investment in the house could be no more that $171,600. Assuming that all repairs, renovation and transaction soft cost would be $30,000, we then would pay up to $ 141,600 for the house.
We would like to start the program with a commitment from our investor for at least $300,000 or two houses to start. It is not our plan to purchase houses that are in need of major renovations, therefore we believe that the houses can be purchased quickly (before the market has a chance to rebound) and rented within a couple of months of purchase.
We expect that the holding period would be 2-4 years at which time substantial profits would be made upon sale. Our profit position would be subordinated to yours. By this I mean that you would get your investment back plus 5% per annum before we were to get our share of the profit. My company would provide Brokerage services at wholesale to the venture at 2% (buying and selling). Our company would be paid management fees , overhead and cost (out of the 45%) as incurred. The fees would be at market rate.
I hope this has answered your question. If you have specific questions or suggestions please advise at your earliest opportunity.
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If both of them were purchase money loans, maybe... Were they really doing 80 /20 rental deals even in the crazy days? Most 80/20 deals the buyer had to claim they were going to be owner occupied.
BK is a federal law thingie. Realtors aren't going to give you a definite answer. We will say we can't advise you about this question because we Realtors are not attorneys and BK is a lawyer thing.
As some one who is not an attorney but merely a citizen with an opinion about right and wrong, i would not want to be answering to a federal judge if I had claimed to be an owner occupant on a loan application without the intention of actually being an owner occupant.