How does this market look?

mobile home university
1

Hello everyone, I have my first park under contract and one of my concerns is the strength of the market. I have a negative feeling about the market because it is the most depressed metro area in my state. I would not consider investing in other types of real estate in this market, but I am wondering if it would work for a mobile home park.
I wanted to get some objective opinions based on the numbers.

Metro Area Stats
Population: 100,000
Pop Change (1990-2016): -1.5%
Unemployment: 6.5%
Median Household Income: $37,000
Median Home Price: $85,000
3-BR Apartment: $900
Housing Vacant: 14.5%

The park is 90% occupied. The other parks in the area have strong occupancy with the exception of one, which is a distressed/REO property.

I ran a test ad in the metro newspaper and received 40 unique inquiries over a 10-day period.

Thanks in advance for any opinions or advice!!

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What do 3BR homes rent for? 2BR?
Apartment vacancy rate is a key number you’re missing. So is apartment rent growth and overall rent growth. Job growth? What industries are hiring/growing? How far to the nearest Super Wal-Mart?

What do your tenants pay in total housing expense (space rent + home loan payment)? How does it compare to the apartment/home rent?

What does your park offer that the other parks don’t? Have you spoken to the owners/managers of the other parks?

Marc C.

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