Let’s get this hammered out. I’ve found several great park purchase opportunities working directly with sellers which have private utilities. (I know and I’m planning on buying them, too)
Once half the folks reading this have changed their shorts, I’d love to hear who is seriously interested in parks with private wells, septics and packaging plants. I know there are a ton of potential buyers on here looking at parks. In certain areas of the US like the Northeast for example, you don’t find a lot of parks on public utilities. When you do find them on public utilities, they typically don’t have great anticipated returns. (Low cap rates)
When we consider our exit strategy, it’s difficult to know how good of a return we need on the front end to be able to make some kind of profit on the exit without knowing what buyers will realistically pay for a park with private well and septic OR well and sewage plant.
Is anyone on here interested in a 40 space park fully occupied with private wells and septics operating with no issues priced at an 8% cap rate? What if city water and city sewer is available ? What about an 9% cap rate or 10% cap rate?
How about a 57 space park 90% occupied with private wells and packaging plant priced at a 8% cap rate? What if there is NO city water / city sewer available but the packaging plant is brand new? What about an 9% or 10% cap rate then?
Both parks are in a decent metro 500k + with all the majors covered. (over 100k median home price, over 40k average household income, unemployment around 6%, low housing vacancy rate, etc etc)