South Texas is pretty cheap. Anyone know why?


#1

Hi all,

I remember Frank saying that South Texas is an anomaly and he wasn’t exactly sure why. There are cheap parks down there and lot rents are decent. Crime seems to be moderate. Population is high.

Is anyone out there very familiar with these markets, like Brownsville and McAllen? I’d love to hear what’s going on down there and if there is some future potential for appreciation in prices.

Thank you! Will


#2

"When Mexico sends its people, they’re not sending their best. They’re not sending you. They’re not sending you. They’re sending people that have lots of problems, and they’re bringing those problems with us. They’re bringing drugs. They’re bringing crime. They’re rapists. And some, I assume, are good people.”

  • Donald J. Trump, June 16, 2015

#3

High crime, snow bird parks dying, and crossing the border into Mexico is a NO,NO!
Have owned parks in the Valley over 25 years ago–the market will continue to decline as the snowbirds are leaving in droves for other locations for ethnic reasons.


#4

Interesting. Everyone always says what great tenants Hispanic people are. Thanks for your responses guys.


#5

To be clear, I have many Hispanic tenants, and they tend to be very solid. My quote was more in jest than anything…

This specific part of the country is quite different however and is very dangerous and volatile at the moment given everything that’s going on. I’ve heard some describe it as a war zone.


#6

I own a park in Brownsville that is not a Winter Texan park. I have reliable Campground guests that pay monthly and have had very little if any crime issues in the park. My park is located on Boca Chica Blvd close to the airport, close to the future SpaceX Spaceport, pipeline construction just beginning and future LNG plants at the nearby Port of Brownsville. How’s that for anticipated appreciation? This area is expected to change substantially over the next few years. I hope it’s true!

And FYI… I do still cross into Progresso Mexico to shop and enjoy a few margaritas occasionally.


#7

I hear you MHP! From the last line of the quote I could tell it was a bit sarcastic. Quotes from Trump are usually not hard proof! But with real estate…

Thanks for the feedback. I think I’ll head down there to take a look. Would love to hear from other people who own parks down there. w.


#8

My concern for areas near the border: what happens when there is a requirement for citizenship that is actually enforced?


#9

Gimme a break. MOST of us know what he meant. You don’t see Lawyers, Doctors or Software Engineers swimming across the river.

I’ve been to the back parts of Mexico and seen how these people live, and I don’t blame them. No water, no power, dirt floors, “homes” built out of scrap plywood and corrugated tin sheets. It’s terrible, but a testament to socialism. If I was under those circumstances, I’d swim too.

However, a large percentage of these people are generally uneducated, at least somewhat illiterate, that is all he meant.

And yes, some are criminals, just look at the MS-13 and other gangs. Drug cartels, most heroine comes in that way, and now fentanyl! A kid that grew up calling me his uncle recently died from an overdose of that crap. Those dealers should be charged with murder.


#10

The irony is that I’m actually Hispanic although you probably wouldn’t know that by looking at me. I recently closed on a large park and am keeping the husband/wife manager team in place because they’ve been phenomenal. They literally asked me - “what’s your nationality?” - and I answered, “American, just like you” :slight_smile:

In fairness they did not mean any ill will. The park is largely Hispanic and they informed me that the plow guy treated the Hispanic lots unfairly. I got rid of him immediately.


#11

There is currently a lot of inventory in the Valley, which has historically made it difficult for owners to push rents. There are two major market sectors in the Valley 1) Senior RV parks sometimes with MH or park model inventory 2) Family parks. It’s important to differentiate when evaluating the market. There are demographic factors working in the favor of both as the baby boomer wave rolls into retirement coupled with the fact that population growth projections in Hidalgo county are very favorable. If you visit the area, you’ll notice that there is a currently a good deal of construction, and many pockets have a lot of charm; South Padre Island, tropical bird watching, golf etc. ELS and RHP actively own in the market.
In terms of safety and proximity to the border, typically the bad guys tend to want to get a little further down the road after crossing. Border towns tend to have a higher police presence. Of course, each community is different and it’s important to do your homework on the neighborhood you are buying in.
You will be battling the possibility of losing residents to land homes, as land is affordable and there is a lot of area to sprawl, but the population is big enough and growth trends steep enough that there should be enough demand to keep occupancy levels up.

Hopefully this helps a little…