That’s why I’m looking for advice from someone that has been in the trenches because this will be my first park. I also have an option on another park that has 68, spaces 55 filled, four POH, city water, but again a septic with drain fields instead of the WWTP. Only 10 acres are being used with 50 acres open so if the drain field were to need replaced or extended it wouldn’t be a problem.
I have this park under contract as of last night and am just starting due diligence. These are all newer homes with most having lap siding and peaked roofs. Rents are at 220 but last increase was only 20 back in 2010. Current market rents in other parks are 295-308. Separate metered water, electric and natural gas. Average tenant has been there for more than 8 years. Parks within 10-20 mile radius are filled except for 3-4 spots in each. This park has a history of 80-85 % occupancy over past ten years and a 90% collection rate. All tenants on month to month lease, all homes skirted and needs only minor landscaping. Large lots with many able to accommodate doubles if desired.
Two downside, with first is that the drive is paved and needs patched or top coated. The seller had estimate this past spring for chip seal coating but decided to sell instead. Secondly there is no seller finance so have contract based on 650k purchase price with 25% down 5.5% max rate 20 year financing.