Don't fall for lot-rent real estate (Prescott: for sale, rental, condos)

[TJJT]

I do a lot of real estate buying and selling in AZ and UT. At least 90% of the listings on Zillow and Craigslist are manufactured homes on rental lots. I hear nothing but horror stories from people who spend almost lot+home cost on a manufactured home on a rented lot, and within two years they see at least a 40% hike in lot rent. It costs at least $6,000 to move a manufactured home same-county and that's if it's built within the last decade(most aren't)..

Most people doing it seem to be targeting retired 55+ people.. Do a little extra searching folks.. That same $15,000-$20,000 buys a place with land, and it's going to be on the power and water grid and code-compliant too..

[AZDesertBrat]

Originally Posted by TJJT

I do a lot of real estate buying and selling in AZ and UT. At least 90% of the listings on Zillow and Craigslist are manufactured homes on rental lots. I hear nothing but horror stories from people who spend almost lot+home cost on a manufactured home on a rented lot, and within two years they see at least a 40% hike in lot rent. It costs at least $6,000 to move a manufactured home same-county and that's if it's built within the last decade(most aren't)..

Most people doing it seem to be targeting retired 55+ people.. Do a little extra searching folks.. That same $15,000-$20,000 buys a place with land, and it's going to be on the power and water grid and code-compliant too..

We have a lot of that where I live and it's the main reason I didn't buy in a 55+ development. I figured that, even if I could pay the home off fast, I would never own the land it sat on and would be making 'payments' as long as I lived there. Back then I believe the average lot rent was $550 a month. My mortgage payment is just a tad over that but I don't have to pay $500 over that for land rent.


Those places do sell a LOT cheaper than your 'regular' homes in 'regular' neighborhoods...other than 55+... and it's really tempting to buy one. But the cons outweighed the pros enough to reconsider and mostly had to do with finances.

[teddyearp]

Thanks for the heads up. At least for the poorly informed and those who do not think hard about what they are getting into.

I just completed a home search with a closing about two weeks ago and did see plenty of these along the way. Once I saw that I would still have to 'rent' the lot, I moved on. I mean, the whole idea of home ownership is to OWN the durned place and not to have to pay rent isn't it?

[TJJT]

Yeah and all those listings are under "For Sale" filter on Zillow and "real estate for sale"(instead of "apts/housing") on CL. Low-information buyers will see the buy-market flooded with them and think they are the only option.

You'll see the same thing in Florida..

[Smile37]

Originally Posted by TJJT

I do a lot of real estate buying and selling in AZ and UT. At least 90% of the listings on Zillow and Craigslist are manufactured homes on rental lots. I hear nothing but horror stories from people who spend almost lot+home cost on a manufactured home on a rented lot, and within two years they see at least a 40% hike in lot rent. It costs at least $6,000 to move a manufactured home same-county and that's if it's built within the last decade(most aren't)..

Most people doing it seem to be targeting retired 55+ people.. Do a little extra searching folks.. That same $15,000-$20,000 buys a place with land, and it's going to be on the power and water grid and code-compliant too..

Wow, thanks so much for the feedback. In NC (my current state), I have lived in a condo & I don't have much experience in owning land/a full scale home, however I grew up in the foothills & I know a little about septic tanks, water wells, tree removals, and roof replacement. I haven't researched homes in AZ yet, but are there condos in the Prescott area $60-80k??? I chose a condo here b/c I was a single mom when I purchased it & I didn't need the hassle of house/yard maintenance. Now, approaching 40, I feel as by the time I purchase a home with a yard (now that my son will be in college soon)... it seems that I will just have to turn right back around and downsize again.... and I would prefer to invest my money where it counts, especially for my latter years. I'm in the process of building up my retirement now. What would you recommend in terms of purchasing a place for me to live in Prescott (or similar), if the opportunity presented itself? Thanks, TJJT for sharing your knowledge.