Starting due diligence on my first park


#1

Let me apologize upfront for hogging a lot of space because I think I will be filling up the forum with some good questions (and some stupid questions!) So right out of the chute: Here goes!

If everything else is in line, and the numbers are good, would you move forward on a deal that is located in a flood plain? Assuming you have quotes on insurance and it fits your budget, or is this something you would run from?


#2

Whew,

That is a very slippery question.

Is this a 100 yr,. 50 yr, or 25 yr flood plain?

All the same, I’m not sure I’d want the hassle at flood time. Your insurance would have to somehow cover permanent loss of income. If the local authorities change the rules after the next flood e.g. must have floor at xx ft above sea level, you may be looking at raising your mobiles up 3 - 6ft higher like in New Richmond, OH. Not a good look for the few that have done it.

A park north of Cincinnati flooded its lower half several years back. No one would move back to that section AND the residents warned any newcomer about the hazard/misery, etc.

I’d have to buy this thing for a song for me to sleep at night but then I’ve lived through a couple of floods.

Steve


#3

I have 5 parks currently… and my answer would be no. In this great, buyers market, why settle for a park that has issues.

I have walked away from two deals that looked great on paper, but not so great if you top loaded the issues on.

Just do the smokin deals… you will sleep better when the weather report calls for rain…

all that said… if your going to buy a dog, at least get one without flees.