I currently have a deal under contract which consists of two smaller parks totaling 45 spaces in small town of 11k. On the surface appears to be decent opportunity. Have just started the due diligence process. I would be seeking an active or passive capital partner on this however first things first:
14 space park
31 space park
(5 minutes from each other)
- 31 Occupied (69%)
- 14 Tenant Owned /17 Park Owned
- 4 Abandoned Homes-3 Salvageable
- 3 Vacant Move In Ready Homes
- 7 Vacant Lots
- POH -70’s and 80’s
- Sewer lines recently replaced in the smaller park
- Avg Lot Rent $160(recent increase from $125 which is low)
I think rents can be bumped up to $200 range.
- City Water/Sewer /individually metered
- Tenants pay all utilities
Metro of Wichita County 150,000 Population
Burkburnett Population 11,000
Low Unemployment 4.6%
Household Income 50k
2BR Apts $680-$790
Med Home Price $88500(Burkburnett) $103000(Wichita Metro)
Lower Crime Rate
10 miles to closest Walmart
Owner wants cash out, health issues has caused park neglect
- Rents could be pushed to $200
- Convert POH Homes to RTO/LO
- Fill Rent Ready Homes
- Fix up and Sell Vacant Homes(
- Fill Remaining Vacant Lots
- Opportunity to Double Value of the Park
1)Zoning- 14 spc park is legal, the other appears to be legal non conforming zoned business/commerical --waiting to hear back from city inspector. who is dragging his feet , to confirm. However if that is the case on the one park …no homes can be brought in to replace any vacant pads which currently there are 3 in that park. Would this be a deal killer?
- Financing- Would this be a challenge to obtain bank financing? – I will be checking with local lenders…but more so on the resale exit.
Thanks in advance for any of your comments, concerns and feedback.