You are so right about everything! My park rent is 982.00 I don’t need insurance & properly taxes. It’s the cheapest way to go. I don’t want a house! No headaches, also for mobile that are land lease you get renters insurance. 462.00 a year
If your perfect breakdown doesn't explain things to those who jump to comment, I don't know what will. We live in MA and I'll tell you what, you cannot find anything $359k or under! Our home is from 1911 and if we were to buy it now, it would be close to $600K!! Insane. Manufactured homes make perfect sense to us, whether we buy with the land or leased land. Great video and I love the channel's new name!! 😊😊 I took the survey!
Very informative. Thanks. I’ve been following a particular park I’d like to retire to in the Lakeland area. A large very nice park with about 1100 lots. A year ago, on Zillow, there were only about 40-50 homes for sale. Now, there are 97! The park just sold to a large nationwide park company and the lot rents have increased significantly. Is this a normal phenomena or just isolated to a few of the more upscale parks? What about the parks in your immediate area? Thanks for all the great videos.
I'm surprised! For parks this size, this is very, very unusual, especially if the park was previously owned by a large corporation to begin with. Typically, when you hear of parks getting sold, they're small, mom-and-pop parks. Or, where the land value of an old park far exceeds the income that the park is receiving. You need to compare what the park was getting for rent in the past to what they now have to pay. Chances are the old rent rates were well below what the market value is for that particular area. If you were the buyer of that park, odds are you paid much, much more than what the previous owner paid. So what was profitable for the past owner would not be profitable for you, especially if you financed the majority of your purchase. Unfortunately, the days of having a sympathetic owner who would allow you to fall behind 2 months in your lot rent have made way to big businesses whos only interst is rate of return. It's just business anymore. If you pay your lot rent on a timely basis, they will just leave you alone.
@@RoyandLily the Park is called Cypress Lakes Village. I believe Cove Communities purchased it from Blair, which I believe was family owned. Is it possible parks with golf courses, (Cypress Lakes has 2), have higher overhead and use lot rent to subsidize the golf courses? Just a thought. Thanks.
The more amenities the park offers, the more you can expect to pay in lot rents. 2 golf courses is a lot of overhead, but amenity rich communities are more expensive and desirable. There are plenty of parks with basic amenities like shuffleboard and clubhouse/pool only that will have lower costs. Also, location makes a big difference. Lakeland is a fairly affordable area of Florida. The further south you go in Florida, the more expensive it gets, in general.
when I saw my first video by you and Lily, and I saw my first "lot rent" with a property you were featuring - I have to admit I was thrown and jumped conclusions! But then you did the breakdown and the lot rents usually include tax & insurance, perhaps lawn care, water, maybe there is a clubhouse, pool, etc - then it made more sense. I like that you even break it down by qualifying income estimates. The $359k example of a 1001 sq foot single family home is a good eye opening example of the reality of purchasing a SFH at this time and nothing is included at all except mandatory insurance you will foot on your own because the bank is on the hook. I'm not yet understanding how the individual is covered by insurance when the park buys it for everyone, but I'll keep watching to learn more!
Al, I think you're misunderstanding. In a land-lease park, the park is responsible for carrying insurance on all the common areas and infastructure. Now, don't get me wrong! I'm sure a lot of that premium comes from the lot rent you pay! However, you are still responsible for carrying insurance on your structure. So, if your home catches fire, the park is not responsible for that. Now, if you pay cash for your MH, insurance is optional. You can elect to self-insure.
thanks for the clarification I was not understanding that correctly. I should have known better but I guess I was confused seeing the breakdowns with T&I in them. I would not want to self insure for sure.@@RoyandLily
Russ, good question. If you finance anything, even a birdhouse, you'll be required to carry insurance and the bank will tell you what minimums you need to carry. If you pay cash, you have a couple of options. A.) You can tailor a policy to your liking and budget without being mandated by a finacial institution. I think this is the option you brought up in your question. Or, B.) Elect to self-insure meaning, set aside your own cash reserve in the event of damage. In other words, not carry insurance at all.
If you're looking to pay cash for a single family home, then you're miles ahead of anybody looking to mortgage. In our example alone, you'll save $1700 per month with no mortgage payment. But even with cash, you'll be buying in a highly inflated market. Best to sit back and see what happens. However, if you're intent is to move to Florida right now, then consider purchasing a manufactured home as a temporary way to ride out the storm here. Hey, you never know. You may like it enough to stay put.
Hey Roy my Aunt passed in March. Mobile home in Spanish Lakes.Nice amenities. Very nice neighbors.Need to just get rid of it. My sister just wants to rent it out for 1200 a month. I do not want the responsibility. If the air conditioning goes out and I have to spend thousands in repairs that is just not what I want to do. We live up in North Carolina and we would never use the facilities. The little bit of money. My aunt left us was enough to carry the house for about a year. I feel we are just throwing the money away each month. I would take any offer that comes along. Otherwise, when the money runs out, we will just hand it back to the community.
Good Morning Steven. I understand your situation completely and have run into this more than once. The rental idea is not the best one. I agree with you there. First of all, you are not here to maintain the home (like you said). Secondly, the park only allows you to rent the home for no more than 6 months out of the year. That leaves the home vacant for the next 6 months. So financially, you won't come out ahead. The first thing you want to do is have Lily and I do a full written appraisal on the house. This will give you some idea of options and prices. This is free, of course. If you want, please feel free to call me at 330-502-1947. You do not have to be here in Florida to do any of this. We just need access to the house. Everything else can be done via Email and/or DocuSign. Since this is an estate sale, I'll let you know what needs to be done in order to sell the house with the least amount of hoops to jump through. Thanks, Roy and Lily
Everyone is 1 Emergency away from BROKE and who wants to be in that situation at 60+ and already trying to stretch a $1.00 and Social Security is going to be obsolete in less than 10 years.
Melbourne: www.fourstarhomes.com/search-results?dir=desc&area=&office=0&city=Melbourne&prktyp=0&parkID=0&prtype=0&minPrice=0&maxPrice=0&rent=0&bed=0&bath=0&srt=newest&asfm=y Nothing in the Palm Bay area.
I think the term 'lot rent ' turns off people instantly and most of them don't understand what it is. I wish the industry used the more commonly understood terms HOA fees or maintenance fees. Park owners make $ by maximizing the isage of their land, and that means keeping prices in accordance with what park residents can afford. The real downside would be if the park owners sold to a developer who wanted to build on the land. But those would most likely be older, smaller parks closer to the oceans, where land is at am absolute premium. And there aren't too many of those left.
No matter how well you explain everything, if you can't afford the lot price and it's too high ... it's too high, for that person. My house payment is $873/mo. (a beautiful 4 br, 2 ba, 2200 sq ft home in the midwest); so yes, buying a home AND making that high of a lot payment is too much. People who want to retire elsewhere get a rude awakening when finding out how much the lots are on top of buying the home. So, both sides need to be understanding of why the cost is why it is, and why people are in shock when they hear how much it is. 😀
It's true. If you're settled into a home you purchased over 5-years ago (especially over 10 years ago), it's going to be difficult to let it go and enter the market today. Homes in the midwest are usually less money to begin with. To compare prices out there to prices here in Florida isn't even fair. Florida is sticker shock. I don't know if your payment includes tax and insurance. If it doesn't, $873 per month only buys you about $135,000 of principle on a 30-year term. You can't buy anything decent here for $135,000. Which means, you would have to put down the difference down in cash to keep that payment. The real killer here, though, isn't the mortgage, but rather the homeowners insurance. Average annual premium is $5500 to $6000 per year. That's another $460 you need to add to the $873 mortgage payment. And, insurance is expected to increase again sometime in 2024 You did bring up a good point. If you think $1000 per month is unaffordable or just too high, then Florida is not for you. It just doesn't get any cheaper than that. This state is not the cheap retiement state it used to be famous for. For many, it may be better just to stay put.
@@RoyandLily Yes, it's the whole PITI, and I have a very low rate. I think more & more people are starting to realize that they will not be able to afford to retire to where they had planned, years ago, and are just staying put! Sad! 😟
HappyDay, perhaps I can eventually do a short. However, devoting a full video to her cooking is not something that would work on this channel. I will tell you, Lily just informed me that we will be having Russian cabbage soup for dinner tonight. I'm not a big fan of cabbage, but I can tell you this soup is delicious.
I don't mind paying the lot rent because of what's covered. It would be nice if I didn't have to mow the yard, or worry about paying the water bill. The only problem I have with lot rents is when a new owner buys a park, then immediately raises the lot rent on current residents, which happened recently in Lakeland. There was a news article I read, thanks to Florida Manufactured Home LIving's FB page, and one of the residents is having to sell her home and move in with her kids in Indiana if I remember correctly because she can't afford to stay in her home. I know it's just my opinion, but current residents should be allowed to be grandfathered in. If a new resident buys a home in their park, then by all means, pay the higher rent. But residents who already live there shouldn't have to. When it comes to moving to Florida, you know I'm just like you, Roy, in my way of thinking. As soon as my wife retires, we're heading down permanently. Thank you again for posting another very informative video.
Orion, I think there is more to this story that's not being told. Under Florida law, residents are to be given notice of such a sale, with the option to purchase the park at the same price offered by the buyer. A 51% approval is needed by the residents, and there are major banks who would buy the park on their behalf. The park would no longer be a land-lease, but rather a Resident Owned Community (ROC). The park would be run by an HOA, with the HOA members elected by the residents. So, were they given that option???? Off the top of my head, I can think of 3 things: A.) The park owners circumvented the statute. B.) The residents ignored (or didn't understand) the option and failed to respond within the 90-Days. C.) The residents did not acheive a 51% approval and the motion failed. So, something happened here. Many states have adopted such laws, and many parks under threat of being sold were successfully purchased by the residents. This includes parks populated by very low income residents. Looking at the big picture, it's just not lot rents forcing people out. Many, many homeowners and condo owners are struggling to make ends meet due to rising costs. Many are forced to sell. Some leave Florida all together. Forclousure rates here are increasing, and expected to further increase over the next couple of years. So, regardless of what you own, there are going be issues or hardships.
I did a video on this subject.ruclips.net/video/ktpisWQZZKw/видео.html Don't mind the poor production quality. This video was made prior to Lily and I taking our channel more seriously with better equipment. I do plan on remaking this video when I can find the time.
I was a real estate paralegal for over 40 years. Information very well explained and clear. 😊
Thanks Kathy! It's always good to get another perspective from somebody else in the field.
One of your best videos. Thank you.
❤excellent thank you ❤
You are so welcome
Thanks for positive information about living in fl 😊
My pleasure 😊
Informative. Nicely done Roy.
Thank you Daniel!
Another great job Roy. It just comes down to if you want to live here this is what you have to pay.
Thanks! That's exactly the point of the video. There are no free rides here.
You are so right about everything! My park rent is 982.00 I don’t need insurance & properly taxes. It’s the cheapest way to go. I don’t want a house! No headaches, also for mobile that are land lease you get renters insurance. 462.00 a year
If your perfect breakdown doesn't explain things to those who jump to comment, I don't know what will. We live in MA and I'll tell you what, you cannot find anything $359k or under! Our home is from 1911 and if we were to buy it now, it would be close to $600K!! Insane. Manufactured homes make perfect sense to us, whether we buy with the land or leased land. Great video and I love the channel's new name!! 😊😊 I took the survey!
Gina, you are always a welcomed guest on our channel. Lily and I appreciate the informative comments you post and appreciate your support.
that’s just plain greed there is no reason a regular house should be worth half a million dollars
Great video Roy, very informative!
Glad it was helpful!
Very informative. Thanks. I’ve been following a particular park I’d like to retire to in the Lakeland area. A large very nice park with about 1100 lots. A year ago, on Zillow, there were only about 40-50 homes for sale. Now, there are 97! The park just sold to a large nationwide park company and the lot rents have increased significantly. Is this a normal phenomena or just isolated to a few of the more upscale parks? What about the parks in your immediate area? Thanks for all the great videos.
I'm surprised! For parks this size, this is very, very unusual, especially if the park was previously owned by a large corporation to begin with. Typically, when you hear of parks getting sold, they're small, mom-and-pop parks. Or, where the land value of an old park far exceeds the income that the park is receiving.
You need to compare what the park was getting for rent in the past to what they now have to pay. Chances are the old rent rates were well below what the market value is for that particular area. If you were the buyer of that park, odds are you paid much, much more than what the previous owner paid. So what was profitable for the past owner would not be profitable for you, especially if you financed the majority of your purchase.
Unfortunately, the days of having a sympathetic owner who would allow you to fall behind 2 months in your lot rent have made way to big businesses whos only interst is rate of return. It's just business anymore. If you pay your lot rent on a timely basis, they will just leave you alone.
@@RoyandLily the Park is called Cypress Lakes Village. I believe Cove Communities purchased it from Blair, which I believe was family owned. Is it possible parks with golf courses, (Cypress Lakes has 2), have higher overhead and use lot rent to subsidize the golf courses? Just a thought. Thanks.
The more amenities the park offers, the more you can expect to pay in lot rents. 2 golf courses is a lot of overhead, but amenity rich communities are more expensive and desirable. There are plenty of parks with basic amenities like shuffleboard and clubhouse/pool only that will have lower costs. Also, location makes a big difference. Lakeland is a fairly affordable area of Florida. The further south you go in Florida, the more expensive it gets, in general.
You guys are awesome
Thanks Frank!!
when I saw my first video by you and Lily, and I saw my first "lot rent" with a property you were featuring - I have to admit I was thrown and jumped conclusions! But then you did the breakdown and the lot rents usually include tax & insurance, perhaps lawn care, water, maybe there is a clubhouse, pool, etc - then it made more sense. I like that you even break it down by qualifying income estimates. The $359k example of a 1001 sq foot single family home is a good eye opening example of the reality of purchasing a SFH at this time and nothing is included at all except mandatory insurance you will foot on your own because the bank is on the hook. I'm not yet understanding how the individual is covered by insurance when the park buys it for everyone, but I'll keep watching to learn more!
Al, I think you're misunderstanding. In a land-lease park, the park is responsible for carrying insurance on all the common areas and infastructure. Now, don't get me wrong! I'm sure a lot of that premium comes from the lot rent you pay! However, you are still responsible for carrying insurance on your structure. So, if your home catches fire, the park is not responsible for that. Now, if you pay cash for your MH, insurance is optional. You can elect to self-insure.
thanks for the clarification I was not understanding that correctly. I should have known better but I guess I was confused seeing the breakdowns with T&I in them. I would not want to self insure for sure.@@RoyandLily
I sole my land, as I cudnt maintain the dead trees dirt Rd.And I live in Maine where Apts are obsurd
Is insurance required? Many of these homes are not too expensive. I think it would be wise to just buy liability coverage and self insure the home.
Russ, good question. If you finance anything, even a birdhouse, you'll be required to carry insurance and the bank will tell you what minimums you need to carry. If you pay cash, you have a couple of options. A.) You can tailor a policy to your liking and budget without being mandated by a finacial institution. I think this is the option you brought up in your question. Or, B.) Elect to self-insure meaning, set aside your own cash reserve in the event of damage. In other words, not carry insurance at all.
How about if you had cash and don't need to finance?
If you're looking to pay cash for a single family home, then you're miles ahead of anybody looking to mortgage. In our example alone, you'll save $1700 per month with no mortgage payment. But even with cash, you'll be buying in a highly inflated market. Best to sit back and see what happens. However, if you're intent is to move to Florida right now, then consider purchasing a manufactured home as a temporary way to ride out the storm here. Hey, you never know. You may like it enough to stay put.
Well Said Roy!!!!!!
Thanks Betty!
Hey Roy my Aunt passed in March. Mobile home in Spanish Lakes.Nice amenities. Very nice neighbors.Need to just get rid of it. My sister just wants to rent it out for 1200 a month. I do not want the responsibility. If the air conditioning goes out and I have to spend thousands in repairs that is just not what I want to do. We live up in North Carolina and we would never use the facilities. The little bit of money. My aunt left us was enough to carry the house for about a year. I feel we are just throwing the money away each month. I would take any offer that comes along. Otherwise, when the money runs out, we will just hand it back to the community.
Good Morning Steven. I understand your situation completely and have run into this more than once.
The rental idea is not the best one. I agree with you there. First of all, you are not here to maintain the home (like you said). Secondly, the park only allows you to rent the home for no more than 6 months out of the year. That leaves the home vacant for the next 6 months. So financially, you won't come out ahead.
The first thing you want to do is have Lily and I do a full written appraisal on the house. This will give you some idea of options and prices. This is free, of course. If you want, please feel free to call me at 330-502-1947.
You do not have to be here in Florida to do any of this. We just need access to the house. Everything else can be done via Email and/or DocuSign. Since this is an estate sale, I'll let you know what needs to be done in order to sell the house with the least amount of hoops to jump through.
Thanks, Roy and Lily
Wish I owned a Mobile home park
Darrel, you can own your own park.. Check out www.mobilehomeparkstore.com/
Everyone is 1 Emergency away from BROKE and who wants to be in that situation at 60+ and already trying to stretch a $1.00 and Social Security is going to be obsolete in less than 10 years.
Hi do you have mobile homes in Melbourne or palm bay area
Melbourne: www.fourstarhomes.com/search-results?dir=desc&area=&office=0&city=Melbourne&prktyp=0&parkID=0&prtype=0&minPrice=0&maxPrice=0&rent=0&bed=0&bath=0&srt=newest&asfm=y
Nothing in the Palm Bay area.
I think the term 'lot rent ' turns off people instantly and most of them don't understand what it is. I wish the industry used the more commonly understood terms HOA fees or maintenance fees. Park owners make $ by maximizing the isage of their land, and that means keeping prices in accordance with what park residents can afford. The real downside would be if the park owners sold to a developer who wanted to build on the land. But those would most likely be older, smaller parks closer to the oceans, where land is at am absolute premium. And there aren't too many of those left.
No matter how well you explain everything, if you can't afford the lot price and it's too high ... it's too high, for that person. My house payment is $873/mo. (a beautiful 4 br, 2 ba, 2200 sq ft home in the midwest); so yes, buying a home AND making that high of a lot payment is too much. People who want to retire elsewhere get a rude awakening when finding out how much the lots are on top of buying the home. So, both sides need to be understanding of why the cost is why it is, and why people are in shock when they hear how much it is. 😀
It's true. If you're settled into a home you purchased over 5-years ago (especially over 10 years ago), it's going to be difficult to let it go and enter the market today. Homes in the midwest are usually less money to begin with. To compare prices out there to prices here in Florida isn't even fair. Florida is sticker shock.
I don't know if your payment includes tax and insurance. If it doesn't, $873 per month only buys you about $135,000 of principle on a 30-year term. You can't buy anything decent here for $135,000. Which means, you would have to put down the difference down in cash to keep that payment. The real killer here, though, isn't the mortgage, but rather the homeowners insurance. Average annual premium is $5500 to $6000 per year. That's another $460 you need to add to the $873 mortgage payment. And, insurance is expected to increase again sometime in 2024
You did bring up a good point. If you think $1000 per month is unaffordable or just too high, then Florida is not for you. It just doesn't get any cheaper than that. This state is not the cheap retiement state it used to be famous for. For many, it may be better just to stay put.
@@RoyandLily Yes, it's the whole PITI, and I have a very low rate. I think more & more people are starting to realize that they will not be able to afford to retire to where they had planned, years ago, and are just staying put! Sad! 😟
I would like to see Lilly cook her dishes from the country she came from. Also, I pray that you both are doing ok.
HappyDay, perhaps I can eventually do a short. However, devoting a full video to her cooking is not something that would work on this channel. I will tell you, Lily just informed me that we will be having Russian cabbage soup for dinner tonight. I'm not a big fan of cabbage, but I can tell you this soup is delicious.
@@RoyandLily Cabbage soup is very healthy as well.
I don't mind paying the lot rent because of what's covered. It would be nice if I didn't have to mow the yard, or worry about paying the water bill. The only problem I have with lot rents is when a new owner buys a park, then immediately raises the lot rent on current residents, which happened recently in Lakeland. There was a news article I read, thanks to Florida Manufactured Home LIving's FB page, and one of the residents is having to sell her home and move in with her kids in Indiana if I remember correctly because she can't afford to stay in her home. I know it's just my opinion, but current residents should be allowed to be grandfathered in. If a new resident buys a home in their park, then by all means, pay the higher rent. But residents who already live there shouldn't have to.
When it comes to moving to Florida, you know I'm just like you, Roy, in my way of thinking. As soon as my wife retires, we're heading down permanently. Thank you again for posting another very informative video.
Orion, I think there is more to this story that's not being told. Under Florida law, residents are to be given notice of such a sale, with the option to purchase the park at the same price offered by the buyer. A 51% approval is needed by the residents, and there are major banks who would buy the park on their behalf. The park would no longer be a land-lease, but rather a Resident Owned Community (ROC). The park would be run by an HOA, with the HOA members elected by the residents.
So, were they given that option????
Off the top of my head, I can think of 3 things: A.) The park owners circumvented the statute. B.) The residents ignored (or didn't understand) the option and failed to respond within the 90-Days. C.) The residents did not acheive a 51% approval and the motion failed. So, something happened here.
Many states have adopted such laws, and many parks under threat of being sold were successfully purchased by the residents. This includes parks populated by very low income residents.
Looking at the big picture, it's just not lot rents forcing people out. Many, many homeowners and condo owners are struggling to make ends meet due to rising costs. Many are forced to sell. Some leave Florida all together. Forclousure rates here are increasing, and expected to further increase over the next couple of years. So, regardless of what you own, there are going be issues or hardships.
I did a video on this subject.ruclips.net/video/ktpisWQZZKw/видео.html
Don't mind the poor production quality. This video was made prior to Lily and I taking our channel more seriously with better equipment. I do plan on remaking this video when I can find the time.
@@RoyandLily I honestly don't know beyond what I said in my comment. That's all I gathered from the news story.
no matter where you live, you will have to pay somebody, ok, wheres my cookie?
Lily ate your cookies!
🍪🥠🍩
lot rent is a rip off.