I’m looking at a park right now that looks like a good opportunity, but there are some nuances.
Roads: dirt/Rock. They don’t look like they’re in bad shape, but I feel like paving would greatly improve the look of the park. How do you decide whether to pave or not if there is no existing asphalt?
Rents: all homes are POH. The tenants are paying rent and not lot rent. I want to convert them all to lot renters and give them the homes, however, because there is no existing lot rent the valuation is speculative. Does it make sense to establish a lowball lot rent amount and offer on that basis? How do you go about seeing if the tenants are willing to become lot renters and take ownership of the homes during due diligence?
Entrances: The MHP has 4 streets adjoining it and three entrances. Is this too many?
Thanks for your input.