Am looking at a small park with major water upside. Only concern is that the homes are very old. Pre-hud and primarily 60s smaller homes (most 2br). 100% Hispanic park so am hopeful condition inside is better than outside. Water and rent raise should take from a 5 cap to a 25 so assume worthy of the risk. Any thoughts?
Park owned or Tenant owned homes?
Sorry, obviously critical, all tenant-owned homes.
I’d get it under contract only because of the upside you mentioned, but would go in with my eyes open that as those become vacant there’s a good chance it will make more sense to junk them than fix them. I would not want to rehab 1960’s homes unless it’s very inexpensive repair work.
Also if you do want to replace these at some point make sure the size of the lots will handle what you would want to replace with (e.g. 16x80’s for example), and also realize as you replace these you’re also going to have to upgrade to 200 amp electrical panels form the 50’s that are probably in there now.
Confirm the state will allow the rent / utility increases you’re planning. Florida for example has some laws that would make this more difficult.
Yeah that’s what I was thinking. This is an old park so the lots are max 60’ deep. And not certain yet of whether 12 or 14 wide. If 12, you think that’s a deal breaker?
Get with the city and figure out what setbacks they are going to make you comply with and see what ability that gives you on what size you home you can replace it with. Also, I would like to see stability with longer term tenants and I would like to see strength in the market as well
Even Google Earth has reasonable measuring tools which can give you an idea aerially. If this is a non-conforming Park that will dictate your setbacks and be the basis for your story if you do need to speak with the city.
12-wide would be a deal breaker for me, there is no source for replacement homes at that width. You would be looking at conversion to an RV community or some other use over time.
Maybe not, they’re only 2’ wider. It’s entirely possible the lots are large enough to handle another 2 feet.