I have a 4 space park , we literally just moved in a new tenant owned home as of about 8 hours ago! after the last tenant passed, had to wait forever on abandonment to demo the home. ! Bought this deal for 10k sunk about another 10 k into improvements ( actually came with the a single family home that we sold off so our cost on it was about 10k post the separation. Lot rents 200 at takeover 5 years ago, we raised them to 250 immediately. I think we are at 330 today . All utilities dirt bill to city. Off city streets so we only really have parking pads. In the time of owning it , we had this one death , and then another house burn down ( which we bought a brand new home ( rent credit total around 900ish rent for a 3ed). On this house that moved in , we are spending a bit on utility hook ups, some free rent, electric upgrade etc. Thats the backstory. So where I’m going with this, its tough to factor in the expenses as a rule of them. We either are 100% full or 75% full. My logic was that we would never have to do anything with the houses since they were long term tenants and tenant owned homes and our market is good. Its really easy to run, we forget about it, all great tenants , almost never hear anything . Why it makes sense for us, we have a 20 space park 5 minutes away. We briefly thought to sell this park on its own. My concern is, what is the market for this . theoretical value of 100k ? Will there by a buyer? Its not going to be a land home deal , who’s going to buy a 4 space park on its own? At this point we would like to hold onto it forever but you always want to have an exit . My guess is the land value vacant has to be at least 20-40 k today if redeveloped as a SFH. Further cons, the zoning can be tricker on these. This was what I thought was legal non conforming upon purchase then we had a debacle when the tenants home burned down about replacement. Since, TX has passed favorable legislation on swapping houses ( hence here we are today with this new home). We occasionally need to take down a tree, no mowing for us. , mostly all just capital costs on utility upgrades with houses, or a pad for putting down a home.
Now, there is value to getting started, I feel so don’t overlook that. We also charge a management fee internally 5% , but what is that, about 60 bucks a month ? We don’t do anything most of the time but this took up quite a bit of time recently with the paperwork , demo, locating a new home, incentives etc. Taxes on this are too low, i don’t know what our insurance is but cant imagine its much. I think this market will be 400-500 lot rents in a decade ( so i place value on that).
Would i buy this deal tomorrow again , in less than a heartbeat I would . But i always know that i can batch it in as part of packages as an exit.
My other concern is your deal will have poor returns bought all cash and the ability to finance might be tricky for this product…
The economics at this price, for value add, you really want to try and have a plan to get space 4 occupied with a house, get all rents to market, you really need the owner to carry and get a better price. There will still be risk, it wont be a sexy deal generating tons of money but if its the one that teaches you how to get house in, raise value, ( refi or sell) and keep rolling, was it worth it? I vote yes. But my deal was 10k. Would I have bought it at 60k , hard to say. I think at 30-40 k id probably do it but above that , id have to run to Starbucks and have at least half a cup of coffee. Good luck 
