Hi All,
I have a nice park in a great market about to be under contract. Looking to assign it. Its in a metro of about 400k, and has massive upside by infill of homes. Apartment rents are 2.5 times the lot rent, so there should be plenty of demand. All other metrics are good, median household income, median home price, etc. Walmart close by.
The only downside is that the park is on well and waste water treatment plant (WWTP). I would say in a market like this, it would be worth about an 8 cap if it was city water city sewer. I’m wondering, about what CAP should I expect to be able to assign this out at? Would love to hear everyone’s feedback.
Depends on size of park. If park is sub 70 lots in $250 to $300 lot rent market buyer pool will be very small. How many spaces, lot rent, vacancy%. Heavy infill with wwtp will push cap even more