I have a park under contract and the roads are in brutal shape, with alligation (spelling?) and pot holes.
The seal coating company said that the roads are shot and they can’t really seal coat. The seller is saying they don’t affect the NOI of the park.
I disagree with the seller. They are an asset with a lifespan, just like a roof on a home. While a roof on a home creates some additional issues, a road still needs to be kept up. I should get the price reduced to replace roads where needed. If you can’t seal coat, I feel that repairs and maintenance will just keep going up as more pot holes will keep forming.
On a small park and with a local bank, what do they usually say about roads? I have had a discussion with lender, but I want to get an additional perspective.
At what point do you say “we need to replace these roads.”?
Additional comments welcome.