Brand new to this forum but attended boot camp in Chicago. We found a completely run down, small MHP that we can get at tax deed sale for next to nothing. No time for due diligence except a quick inspection of well/septic by a plumber (awaiting estimates for repairs), confirmation from the county on licensing, code violations and no additional liens and some great insight from Mike Renz over the phone. (Thanks Mike!). This would be a complete rebuild as all but a couple of the homes need to be demolished. Demand seems strong as many MHP’s in the area and close enough to large metro area (Jacksonville) for jobs. My question, under what circumstances would a park have literally no value or pose too much liability risk to take on? There’s so little cash at risk on the purchase here to worry about losing that but wanted any opinions to help me confirm that there is value in the licensing, land and upside opportunity since no new parks are allowed.
What’s the number of lots, what’s the market lot rent, what’s the purchase price, what’s the water/sewer system age and quality, what’s the certificate of zoning saw, what’s the city inspector say on violations, what’s the Phase I say, do you have the cash to bring in homes to fill the vacant lots and, if so, how many homes can you afford to bring in, what’s the size of the lots, what’s the park’s current density, what’s the road/infrastructure made of?
Frank, your points are all well taken and it’s as if I’ve forgotten my lessons at boot camp. It’s a “no go” so thanks for bringing me back to earth.
Just consider me “ground control to Major Tom”.