When looking at buying a mobile home in a mobile home park within the greater Sarasota Florida area the Buyer of the mobile home has to look at what types of parks exist and what will best fit their lifestyle needs.
Mobile home parks around the Sarasota Florida area come in two types:
- Land Owned Mobile Home Parks
- Land Leased Mobile Home Parks
When looking at buying a mobile home within a mobile home park where you own the land you will be purchasing both the home and a share of ownership in the mobile home park.
A share is similar to a stock certificate that states you as the new Buyer of the mobile own a percentage of the entire mobile home park. This stock certificate means that all of the residents in the mobile home park own an equal share of the entire ownership of the mobile home park. Having this percentage ownership allows the Buyer of the mobile home to vote on certain rules and regulations that the park will look to obtain throughout the year.
When buying stock in a mobile home park within the Sarasota Florida the purchase does come with a pretty steep price.
As of this writing, the average price of a mobile home park ownership certificate is just over $50,000.
What this means is that when you buy the mobile home you will also be required to purchase the stock certificate in addition to the price of the mobile home, they are two separate numbers tied in to the same purchase price.
The pro of buying stock certificate in a mobile home park that is located in the greater Sarasota Florida area is that lot rent will usually be about 50% less than that of a land leased park.
One of the major cons is that the amount of money saved each month on lot rent is a small percentage of the cost of the initial stock purchase price.
For example, the average lot rent for a mobile home on leased land in Sarasota County Florida is $750.
The average lot rent for a mobile home in a land owned mobile home park in Sarasota County Florida is $250, for which this usually does not cover your lawn care, water bill or sewer bill.
If we consider for a moment the cost of the above bills that are not included we could look at another $150-$200 extra per month added on top of the $250 HOA. This would bring the total cost of the monthly bills to around $400.
A $350 savings or, around $4,000 per year.
With the average cost of a stock certificate being $50,000 this means that the owner of the property would need to live in the park for at least 13 years to break even.
If you are planning on living in the park for 13 years just to break even then this may be a good option to follow, especially if the new Buyer can afford the additional $50,000 purchase price.
If this is not feasible then looking at a land owned mobile home park with all of the amenities already included in the monthly lot rent may be a better option.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.