Are tight lots with only on street parking marketable?


#1

I am looking at a park with 60 lots, mostly park owned homes and occupancy near 100%. The park is tight with 13 lots per acre and only on street parking. The parking is designate per lot, but there are no driveways.
My goal would be to convert POHs to TOHs, but will today’s home buyers be interested?


#2

To me this is a lot rent discussion. The homes cost what the market determines, but the amount of yard and neighbor noise you get is reflected in your lot rent. If all the neighboring MHP’s have 8 homes per acre then it’s difficult to say that you should be above their lot rent.

Try testing the demand with an ad to see if you find there is a negative impact. It might have a small knock, but I don’t think I would pass up a park because of this.


#3

Thanks, jhutson. That makes sense.


#4

@jhutson Is 8/acre the average?


#5

8 to 10 is most common. When you get above 12 I call them sh*tstacked. Not ideal - but in some of these ultra-urban grandfathered parks it doesn’t matter because demand is so high.


#7

Many thanks @123Tony456. If I can’t get bank financing on this park, I’d have to rethink the exit strategy as well.


#8

How wide are the lots? I have a high density older park with the lots about 31-32’ wide with a single parking space off-street.

Also, I think with the tighter parks, it really depends on the demand in the Market. With my park, its being marketed towards those who want to downsize (Biggest homes are 2 Bedroom), retired, just starting out, divorced, etc. There are a good number of people who want some yard space but not big lots to maintain (they have other things to do). Just because the lots are tighter doesn’t make the community less safe or attractive but it does limit your target market. That’s just my two cents.