I found an REO park 15 minutes from Dayton OH. List price $197,000. 20 pads. Between 10-12 occupied homes. Bank owns property so the TOH are not paying lot rent at the moment. Market apt rents for a 2 bedroom is $697. Median home purchase is $50,000. How do you evaluate this park and is anyone interested? My guess lot rents could start at $350. $350x10x60=$210,000. Any advice would be helpful
You need to look at what other parks are charging for their lots. Are these parks comparable to the one you are looking at (amenities/size/overall aesthetics of park etc…) ?
You cannot compare lot rent to apartment rent. Moreover, these homes seem to be owned by the tenants, not the park.
Good luck.
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Are you local to Dayton? We have a nice park in Dayton and charge $295.
An REO outside of Dayton should be priced about $10k per occupied pad. REO usually means that park has not been well managed. If you own the utilities and there is ANYTHING wrong with them underground, your profit with a small park will be eaten pretty quickly. Be very careful with small parks. If you don’t own any of the utilities or the roads this could work but otherwise it’s going to be difficult at $18-20k per occupied pad.
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