In my neck of the woods, the trends I have been seeing on parks for sale have only been reduced priced for distressed properties. Not necessarily that the homes are distressed but the owner is having a distressing situation, much like single family sales. Make sense? Sellers price to what they think its worth and what they need for their next move, I think its a marketable guess, not always based on the NOI and other multipliers. Here is my thought on the whole pricing vs aesthetics thing. When you buy, what is your budget, what is your interest on cleaning it up, and how much do you like a challenge? You also have to think about if its in one of the… what is it 9 landlord friendly states? If not, you are in for a bigger uphill fight with your tenants.
Ugly parks do not draw more tenant interest around where I live, people everywhere want safe and clean homes. People all want to feel safe where they live, its a paramount need on Maslow’s Heirarchy. But they also want to be able to afford it. I cannot speak for park buyer interest as the market is always crazy here in WA.
Where we are are people that own and run mobile home parks, we have an ethical responsibility to make those ugly parks into pretty parks that are also safe, instead of just using them as a stream of income that happens to come with lower income tenants. Once you purchase an ugly park, start improving it on the capital improvement side as well as the rule enforcement side, but just like on Roadhouse… be like Patrick Swayze - “whatever you do, be nice.” The residents that are comfortable in dirt, will naturally move along, some will need persuasion by being diligent with rule enforcement, some will leave because the park is no longer fitting their needs of slovenliness. Others will start to gravitate towards your park when they can see and feel the atmosphere has improved to be less trashy and it will increase your market substantially.
Does that answer your question?