We have a small park in Arizona, and two homes in southern California. If I sold them all, I would have about $1.2M total. I wouldn’t mind rolling it all into another park or two, but should I have one, or two?
I like the idea of having just one because I could get a higher-quality park, with hopefully higher-caliber people (yes, I know, there are always exceptions; but on average…), nicer looking, nicer area, etc, etc. However, having all my eggs in that one basket worries me. What if that town gets wiped out by a hurricane and becomes a ghost town? That is, for some reason, the town becomes an undesirable place to live? Instant no income. Having a second park diversifies, which is good, but doubles the management headache, and I’m back to a lower-quality park…times two.
Which is better…having one higher-quality park, or diversifying? And if just one park, how do we protect against loss of income? Is there insurance available to protect against such things?