currently following th e due diligence manual for the purchase of a 11 unit park ( i know tiny) I am wondering if there are any items that can be left out of the due diligence on a property this size. fyi 9 toh 2 poh (maybe need to be hauled off) city water city sewerThanks
I actually think the Due Diligence for a smaller Park is even more important since you have less wiggle room for capital expenditures. Big Parks can absorb these relatively well, but an 11 pad Park has something like a 50% expense ratio and cannot handle items like that and feels even a couple vacancies financially. You need to know what you’re getting or the deal will go upside down from the outset.
Your cost of diligence will already be less checking fewer pads and less infrastructure, and I think that helps. I would keep the steps the same.
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Did you buy that park?