We purchased a park in a major MSA that had some drug problems. My advice if you buy that type of park is to (1) come in with significant capital to reposition the park (i.e. Capital for park facelift - new sign, tree work, roads, fences - anything to get reputation going the other way) and (2) Make sure you have a REALLY good eviction attorney lined up and (3) Get ready for your NOI to drop significantly for the next 6-18 months while you turn it around.
Our park was about 35 spaces which we bought for $500K. It was 100% filled when we bought it. We literally evicted 60% the tenants over a 12 month period. We made various community upgrades to reposition park, tore down a dozen homes, brought in half a dozen new homes, and rehabbed all the other vacancies of former drug tenants. When the dust had settled we had a great looking park with a completely different tenant base. It also had a completely different reputation - the police commented that they haven’t been in our park on a call in two months (used to be there multiple times daily). We ended up pouring in around $200K cash to get it all done. Today that park is worth over $1M and is one of our more turn key properties in our portfolio.