Old park land! WHAT WOULD YOU DO?


Ok next question
What would you do???
I came across this vacant park; I believe it has been vacant x 12 yrs. the park has over grown veg, concrete is cracked, no homes at all, fences up and I don’t know the actual history on why it has been vacant but it holds at least 100 lots from satellite images.

Other than researching the hx(before someone says that)

Say it is legit by the city- would you try to buy the land and start clearing and accepting homes? The tax value on it is like $3-4mill and $25k tax a year, I don’t know exactly how much capital it needs and I believe the owner is in CA,
Would it be worth it? Especially if I don’t even own parks yet. Rookie


Things like these come down to cash on cash return.
First, you will probably need to pay cash as you most likely won’t get financing for something like this.
Second, you will have to repair the park,
Third you will need to buy homes, move them, skirt them, etc.
at this point you’ve invested at least $30K per pad and you don’t have any income. So COC is 0%!
Now assume you are extremely successful and have achieved occupancy of 25% in the first year. What COC return is that? 5%? That’s not worth the trouble. Especially when you can buy an existing park for $20K per pad and get a return on cash of 20%.


It will take 30 years for you to see any return on a investment assuming you even have the hundreds of thousands to get it up and running. You will be negative cash flow for decades unless it is a extremely hot mobile home market. That is however extremely unlikely otherwise it would not be abandoned. It sit vacant because the only value is in the land for redevelopment.


You could offer to lease land at low price with option to purchase . Check town for code compliance- may have to bring things up to current code


Let’s assume this flies. What would the next step be? Spend $20K per lot to bring homes? What would the COC return be?


Not a coc deal more long term appreciation with a lot of upfront capital. Maybe a tax lien sale and then subdivide to sell lots with home package


When a market is topping out, properties that are abnormal, bad and failing neighborhoods, low cap rates, high POH’s, etc seem to attract attention that normally people would not even consider. Noticed a listing yesterday at a 5.6 cap north of Tampa that was a major rehab. Getting your feet wet is fine but please if first time owner try to purchase a well functioning property to gain an initial good experience. A 5.6 cap (generally an advertised cap rate is pro-forma or unlisted normal expenses) is really troublesome with +6 interest rates!! As mentioned before if you have a great +7 cap rate park, we can cash you out for a quick sale!!!


Forgive me, but I just don’t get what the appeal is. If I have $250,000 I rather buy a $1,000,000 park and have cash flow of about $50,000 per year AND long term appreciation. I would not want to spend it on bringing a dozen homes to a leased land deal.