Novice question but how easy/hard is it to add pads to an existing park if there is plenty of land available? I hear cities don’t want parks because of the big financial burden they are.
You must get with your city/county/township to discuss. Its up to them to decide and give you the info. If they approve more sites, then obviously your have to develop those sites with utilities and pads to accommodate new tenants which could be very costly and depends on many variables.
Getting the permit will increase your valuation significantly because there is a lot to it.
Then developing those pads will take a significant amount of capital.
Once you’re done, you will be able to reap the rewards in exchange for taking the risk that there will be no reward.
Thanks for the input! Before I proceed, what kind of price per pad am I looking at for new development? This park has a well and septic for utilities.
To find out the expense load do the due diligence:
ask the city about the development permits and what all they require
ask some contractors that do lot prep for the price
ask some contractors about the mh setting and finish out work price
figure out how much you want to drop on a house to put there.
find out your transpo costs
find buyers once you have the guestimates so you can pre-sell in advance
get the hard money to do the work and then get the house sold with the expenses rolled in. Clear the bill, short term hold on the expense. Just don’t try to cut a fat hog on each house, get out with expenses and then get the lot rent.
That is a very tough question because parks and locations vary so much.
Do you need paved roads
what is the pad prep cost
Do you even need a pad or piers
underground infrastructure requirements
how much dirt do you need to move to make the land suitable for homes
how large is the expansion
People bat around $15-20k per pad, but again there are so many variables it is hard to really know
Depends greatly on your town/city. My town of 120,000 in north east texas would cost $1000 for dirt work and $3.50 per sq foot for concrete. So 70 x 16 = $4950. Get two or three contractors to come give you a quick bid, they will know what permits are required, if any…
Best Regards, Mac1
That is a super good point. I’m in WA and everything is crazy expensive. The land of $5 drip coffee remember lol.