Zip vs Metro Area


#1

Hi Friends,

I am in talks with a specific park owner which has raised some questions for me.

The park is in the Indianapolis Metro, which is a good 1.9 million metro with $132,000 median home price.

When looking at the zip though, it is $66,000 median home price so theres a good chance this is a high crime area that i dont want to buy in, right?

The larger question is that I am prospecting a large numbers of parks so how do I efficiently (emphasis on efficiently) filter out these parks that are in bad neighborhoods that i wouldnt want to buy in even though its in a good metro?

So far, my best solution is, as i did above, searching on Bestplaces.net each park zip and using the zip in this way and not prospecting any parks that are below a certain median home price?

I greatly appreciate any ideas if this is the best way or another easier way?


#2

It really depends…it could be on the fringe of that zip code…but still work

Your biggest item you have to determine is if it pulls and what that tenant base is in that market. look at the schools…most important factor for family parks as MHP residents are not dumb and what their children to go to teh best schools they can


#3

Thanks Ryan! Is there a quick way to type in an address to figure if an address of a park is in a desirable school district?

I have a list of about 1500 parks in my area of interest so I am looking for a quick way to eliminate certain parks or areas so that i dont spend time cold calling just to find out later that its not in an area i would want to buy anyway. Any ideas are welcome!


#4

For what it’s worth I live in a bad school district, but the average home in the area is 300K (it has been transitioning over the last 15 years). Half of parents sends their kids to private school. LOL.


#5

If you can get a 50 space park at a true 9 cap with 100 low lot rents but the school district is marginal …

Id be cautious about throwing on too many filters ahead of time , might cause you to mis something when you create too rigid a box for it to fit in


#6

@JoelE Try https://www.greatschools.org/

On a related subject, if you have that many parks to analyze, I would focus more effort on other elements of park selection before getting to that criteria. Think 80/20 rule on all aspects of what you are doing to really get efficient.


#7

i agree with everyone…markets change and rules of thumb don’t always work in the park world as they potentially would more in apartment or SFH’s…each deal is different.

i would filter more out by size of when they last sold and who currently owns them. could be that a large operator owns it…but that doesn’t mean they won’t sell it to you. It cheaper to market/call more people and get told no them spend time on the front end trying to dig thru parks and look at it and be like i don’t like that one.

Unless you really understand that market, determine the park criteria you are looking for in terms of utilities, location, size, and then start your marketing.

Your database is like your heart…it supports everything that you do when marketing to off market deals and is the center of everything…if you have problems with it then you are going to have problems finding good opportunities.
Spend the money upfront to establish a good database of records, and then go from there


#8

Hi Joel,
You can find crime stats for zip codes easily online, as you may know. Bestplaces provides a basic crime stat that is helpful. So that can answer your question about whether the area is high crime. I own a few SF properties in Indy and know the areas fairly well. You are welcome to PM me the zip code in question and I’ll tell you what I think. For whatever that’s worth. Generally, if you look at the price of homes in the various sections of town, that will give you an idea of what each area is like. There are some pretty rough sections of Indy, definitely many areas where I would not want to own property. So I think you are wise to be concerned.
Best,
JW