Looking at a community in Florida with a 1 acre plot of land that has all the engineering done and been approved for an expansion of less than 10 park models. The unknown is the cost to build. What would you estimate the per pad development cost. Public utilities at the road, flat ground, would need everything. My first thought is $20-25k/pad.
I have heard 19-25k. That has and has not included land cost. Lot of it will be based on market , costs, land costs, regulation etc. I think thats a pretty decent number to factor for estimates.
as you know affordability is getting tight and if the local governments restrict them at a certain point you cross the line to where it becomes profitable. Cost would be reasonable and think of the FL cap rate that will continue to compress and become very tight. You should longer term make some money because this asset class never weakens for the most part. you new park will be beautiful and throw off lots of cash flow with little to no work. Financing should be doable and Frank, Kevin, Jefferson and the other many syndicates maybe you could offer the deal the them (many to choose from, heck you could raise money if you get this park under contract on your very first time). The guy earlier, near the top of the page, wants to raise money too so maybe toss some at him as well. I really feel this time its different as cap rates may or may not move in a buyers direction.