Correct, from frank and dave the mantra is 50 plus lots , metro 100k plus, lot rents below market , city utilities. No POH When you as a buyer differentiate yourself saying , i will take a septic, or i will take a smaller park, etc you may be able to pick up some deals that others won’t giving yourself a potential competitive advantage.
I think though if you are going to dabble outside the metro , you have to be very cautious and have a good understanding of what drives the area ,demand, how to handle vacancy, dealing with vendors when the only person who will come out is mike the plumber… I def think you need to be compensated with a higher return on this but really understanding does a higher return truly justify the risk as well as exit.
Test ads will be your friend here. I tried to by a park that was so cheap one time out of a metro but it was highly dependent on one employer , test ad generated crickets… but i still felt i would buy it. Ultimately it ended up with title problems ( the person who was selling it may not have had a right to sell it ) so title co wouldn’t close this deal.
Dabbling in some markets that dont have velocity would probably make me sick so im happy that one didn’t work out. You take a lot of stuff for granted once you are used to a better market. Jim the electrician stiffed you? Go leave him a nasty review and call stanley, he will be out right away.
I would take a crappy park in a good metro versus a prime park in a crappy metro any day of the week but i do think its worth looking at properties that might veer out of the frank and dave model if you understand the components of it.
There have also been a deals that have fallen into a metro but really they show no health of any of the benefits of the metro as well, so do keep that in mind as well.