Wanted to ask your opinions on the following:
We are looking at a stabilized park 100+pads, strong metro, municipal water & sewer, that are almost completely TOH with occupancy in the 90s at a 6.5CAP
The only concern we have is that all the homes although they are TOH are mostly 70s & 80s models, some in pretty rough shape.
In your experience/opinion do these older homes have a higher correlation (than 14YR industry average turnover rate) with becoming abandoned ?
What are some of the considerations you would take into account when looking at the above scenario ?
I got one experienced operator saying - Stay away , they will all become abandoned over the next couple years and ultimately a $2K liability + trying to find a smaller home that fits these smaller lots etc…
@frankrolfe seems to think that the occupants have been there for the last 30 years and will stick around for the next 30 years and although they don’t look livable to me, the current inhabitants have gotten accustomed to living in homes that are falling apart. And that the tenants don’t have any payments left on those older homes. In addition, this is there only place to live as they have no other cheaper options so really not a concern.
Your perspective & balanced view on this would be invaluable to me