How would you adjust the purchase price for a park with 30 spaces on 30 separate water wells and 30 septic tanks?Assuming the wells and septic are well maintained and in good condition, what expense ratio would you place on the park?There is city sewer and water down the road, so it will be available to connect for a cost. Thanks,Toben
Honestly, I’d probably not do a deal like that. Not at any reasonable price anyway.I’d price the deal as if it were on city water/sewer, and then deduct the connection costs to actually connect to city water/sewer. I’d guess those connection fees and construction costs would be at least $5,000/pad. But do your homework. If you can’t get that cushion, I’d pass on this deal and buy one on city water/sewer.Good luck,-jl-
Is each tenant responsible for pumping and maintenance of their own septic?
I this land/home? I’ve only seen 30 lots with 30 wells and 30 septics when the lots are 1 acre+ each. Never seen that in a park in my entire life.
This is a park not land home. There are 30 wells with 30 separate septic systems. I wasn’t sure how to guess on the expense ratio. Water is free but you have to pay to service the septic? So expect a 30% ratio?
I would be extremely concerned about this park, from an “exit strategy” perspective. Nobody (including us) would want the risk and capital expense of having to worry about 30 different wells and 30 different septic systems. That sounds like a time bomb. Unless that park is in the middle of downtown Los Angeles and there’s a new high-rise condominium tower going up across the street, I’d drop it.