I am looking at a small 20+ park with very small and old homes. It’s full, but almost all are POH. This small park shares a small road with 2 other parks. I was curious about the dynamics. It would be great to acquire the other parks, but if this is not possible and the other parks attract a bad element will that not have a spillover effect, making a turnaround more difficult?
The park is attractive because it is in an actual city with city water and sewer and it’s a little smaller to bite off for a 1st time park. Since the park is mostly Latino tenants, I am hoping that I will be able to sell the homes quickly…
Based on the dynamics you describe, and assuming this community needs a turn around, your success rate will be entirely dependant on the other park owners. Meaning probably unlikely and probably not worth the effort.
Ideally you would sell off the homes and put little or nothing into a turn around. Just sit back and simply skim off the profits.
If you were able to purchase all the parks that would be the time to begin a turn around but not until you do.
I was in a similar situation recently (sounds like the exact same park actually!). I ended up dropping the contract because I realized the surrounding parks would have a negative drag on the park. If I can’t control the whole turnaround, then the risk is too high for average returns.