I’m looking at a park in OK with about 1/3 of the spaces vacant. I haven’t seen it in person yet. But doing a Google drivethrough, it appears all of the existing homes look pretty dumpy. (And the Google drivethrough images were dated 2007, so they are probably worse now!) And the immediate neighborhood around the part is also pretty run-down. I know, walk away, right? But, on the plus side, it’s all on city water/sewer, separately metered, and the city maintains (sort of) the streets! Plus, the best schools in the city are right next door. So there is some upside, potentially.
But my fear is that, with the existing homes in such poor condition, I won’t have any luck getting folks to fill the vacant spaces. If I bring in some new homes under the CASH program, they will be placed next to some homes that just look awful. Who wants to live in a new house in a dumpy neighborhood next to a dumpy home? Not many people!
I also don’t see how a local banker would want to finance it after driving through. (Hello seller financing!)
So, my question: Has anyone ever, at the park’s expense, upgraded the exteriors of tenants’ homes? Most need paint and shutters and skirting repairs. Maybe roof shingles. $1000 per home probably gets them looking good again. Seems to me, if I buy it right, spending $30-40K on tenants’ homes would upgrade the park’s image and make it more attractive to new tenants. And therefore justify a rent increase.
Ever heard of the park paying for tenants’ exterior repairs?