I am looking at a park in a part of East Texas with high density & demand (250,000 pops in a 15 mi. radius of park) with great employer diversity (i.e. not dependent on oil only, etc). Park has about 60% of homes as POHs. The owner says that he started out with tenant homes about a decade ago, but one by one over the years everyone has defaulted and the homes have fallen back into his lap (in terrible shape, and he says spend $200K last year getting them refurbished). His position is that he now is better off keeping these POHs as rentals. If I got this park I would want to convert the POHs to TOHs ASAP. Has anyone seen a park/market where tenant demand for renting was high but it was tough to find potential buyers? What would I need to test to ascertain if these POHs could be converted to tenant-owned with solid owners over the course of the next 12 months or so?
Thanks in advance for any insight or commentary on this.