I’m looking into a park that is basically one dead end street with lots on each side. The seller owns 28 lots, about 20 of them occupied,
There are about 10 additional lots that over the years were sold to separate owners.
Is this concerning? I know it’s preferable to own everything, to help control rents on the street… but should it be a deal-breaker?
The standard metrics are very favorable, pop hasn’t raised the rents to where they should be, great sales price.
You can’t enforce park rules fully if you don’t own all of the lots in the park. Those could create problems for you attracting the right kind of tenant depending on the type of park you want to run.
Doesn’t sound like it is a MHP. Nothing more than MHs on individual lots.
I guess it all depends where the location of these lots are in the park or really if they are in the park at all. for example if I have a park with 38 lots but 28 of those are mine and the other 10 were sold to individual owners I would say that it could be a problem and i wouldn’t consider that a park at all. However, if you have a park with 28 lots and there is an adjacent property next to you with 10 privately owned mobile homes then in that case it wouldn’t matter. I would probably look at ways to separate the 2 parcels.