I am interested to get thoughts on trying to buy parks in urban areas in a several state radius of me compared to trying to buy parks only in the state I live in even if this means considering parks in rural areas of lets say a population of 20,000 or less.
The upside to urban area parks as I see it is the high lot rent, it is easy to catch a flight to, and typically city utilities. The down side I see is that most owners want 7-9 cap because its close to the big city.
The upside to staying in my state , even if this means looking in rural areas, is I can drive to the park at anytime, I know the state law regarding MHP’s and I find the cap rates are much better in the rural parks. The downside is low lot rent, potential for private utilities, among others.
Thanks for your thoughts,