Wow, to say I’m disappointed is an understatement. Need some advice here please, but I think I know what Frank and everyone else is going to say.
The park I have an accepted offer on is in a very small town of 5,000 with a metro of 27,500. SFR median is 70 - 80K depending on the source. 2 BR rent is about $680.
The pluses - Directly across the street from the hospital, bounded on one side by a medical complex and the other by the county baseball park.
Direct billed water / sewer, city even owns the underground plumbing.
Comes with a small vacant commercial building that needs a little work.
Even with the low vacancy, it is being sold at about a 11 CAP.
Current rents at $300, can raise to at least $325
I placed 3 CL ads since Tues. Today is Thurs. I got 1 call that was an immediate hang-up so I’m not even sure it counts. I placed one ad for used, rehabbed homes, and one for the new homes through the CASH program.
The park has an occupancy of 52% - 32 out of 62 lots.
Roads need major work - I did include that in the cap rate.
Part of the park is in floodplain, it appears to be the 100 year but awaiting confirmation on that. If I have to elevate the homes too much, that may prohibit me from using them, reducing the value of the park. I still have work to do on this.
My turnaround plan was to fix the park up, make it look nice (currently is an eyesore) bring in several nice used homes and use the CASH program to bring in new homes. Now I’m having doubts.
The current owner has nothing online, not even a free listing on YP.com
I think I could fill the park, but it’s not a slam dunk for sure and would likely take a lot longer than I had hoped.
Any thoughts are greatly appreciated.
Here is a link to my CASH test ad https://cfl.craigslist.org/reo/5046132506.html
Here is a link to my used home test ad https://cfl.craigslist.org/reo/5042521216.html