Looking at a smaller park in TX 25 spaces 3 vacancies all resident owned, on city services, and individually metered. Demographics appear to check out Rents are high for 2Br $800 range,med home value over 100k, low vacancy, low unemployment, just a very small town(pop 1800) metro 38000, but within 80 miles of Major Metro. Very little maintenence and minimal expenses on this park as residents take care of their own lots and water/and utiliities are billed back to tenants…Rents are low $165 so there is upside in the rents and filling the three spaces(2 homes on the three unoccupied spaces). Seems to be a good little starter park.
However it sits in a 100 year flood plain --however it hasn’t flooded from what I understand .
Would this be a deal killer?
Harder to sell on the exit?
Would raising rents $40 per space right at the get go be too much ?
–there are litterally no other parks in this town and only handful with in 10-20 miles radius so there is no where for residents to go if they did decide to move which is unlikely.
We negotiated what we feel to be decent terms 17% down 295k price. seller carrying the paper at interest only first year 10%. 15 year term.
Seller appears to have taken maintained the park, but never got a flood certificate or did an environmental so those are two expenses we will have to incur which is somewhat significant in terms of upfront expense on a park this side.
Any feedback would be appreciated.
Thanks in advance.