A park in this town is for sale, not sure what to think of the market. This is a small town in MN of about 3,000 people, located about 15 minutes from a town of 60,000 and an hour from the Twin Cities.
2 bedroom apartments in town are about $625-$675. Lot rents here are $350, parks pay water, sewer and trash. Occupancy and housing demand is good. There are 2 MHP’s in town, one park is 18 lots the other about 30. City services at each park. only a few POH at each park, so mostly tenant owned homes.
I think due to occupancy and housing demand, it must be a good market, however due to the size of the city and distance from larger cities, maybe it is not so good. Also, what kind of CAP rate would be expected considering the small park size and in this kind of market? Thoughts?