Alright, I’m about to go out of my mind, or I’m in a black hole of an area that defies reality as we know it…
I’m analyzing a deal right now in the Greenville-Anderson-Spartanburg metro of South Carolina. It is the town next to Greenville, and not too bad of an area. I seem to be getting WAY different results when I look at lot rent comps, and if I include apartment rent comps like MHU suggest I’m even more dumbfounded. Below are the apartment rents for that Zip Code. The current lot rents for the park are $210, which I figured I could push up to at least $250 - $300, however the deal does not meet my metrics for syndication at $250, and really only makes sense to pitch at $300. Let’s not worry about expenses for now.
When I compare other lot rents in the area I get a ridiculous mixed bag anywhere from $150 - $350, with most hovering around $200-$250, and I have called a few property managers in the area and they say they hover around the $200-$250 range.
Studio Apartment $540
1 Bedroom Home or Apartment $610
2 Bedroom Home or Apartment $720
3 Bedroom Home or Apartment $960
4 Bedroom Home or Apartment $1,100
With all this being said, can someone help me make sense of this as it would seem like apartment rents would dictate a high lot rent, but I’m not seeing that in the numbers I am getting on craigslist or from the PMs.
Median home value for that zip code is $136,000 in case you wondered.