like to buy a park first time with down payment of $650000 to 1 million in a warmer whether . Need more than 10% cap rate ,city utilities, few park owned homes ok, manager in place. email me subhash55@msn.com
There are a lot of people chasing this same deal. Also, that down payment is going to buy a relatively bigger park and as frank mentioned in another post ( that is a big first park) . the other issue is that parks this size , depending on what you are calling warmer weather, are going to have more competition and realistically are going to sell at sub 10 caps. Especially with all of the desirable factors you posted, you will be hard pressed to find this deal so maybe revising certain criteria or your strategy in obtaining the property would be of benefit to you. Good luck
I have found that I get good responses from direct mail and also contacting commercial brokers in medium sized towns to get leads that fit this - otherwise you will need to have some flexibility in Park infrastructure or features.
I am a really big fan of piloting a smaller park 500K or less before getting into a $1MM+ deal so you can get your management processes and techniques tuned / scaled. You could also use that extra cash to fill empty lots of a value add park if you have confidence in the town or greater metro area.
Don’t overlook good deals just because they have private utilities. If you are master metered for water and have lots of leaks that huge water bill can become a nightmare.
thanks for advise but sometimes it is the situation that required like 1031 exchange or pay tax and start finding business with lower down payment in a future with lesser income than before.
since I have to do 1031 exchange, I might have to go smaller park and buy house and instead of one property ,get two property
but do not know is it still consider 1031 exchange?
subhash55,
1031 exchange lets owners of real estate sell and not pay taxes to buy more real estate. It doesn’t apply to your personal residence or property held as inventory (builders homes) or quick flips.
There are a few limitations, but if done correctly is a great tool to increase holdings/wealth/income.