I’m looking at a park which checks all of the boxes, but I’m a bit concerned about the market. The park is located in a small town of 2500; however, within a radius of 15 miles, there is a population of 150k and within 30 miles, there is a metro of 300k. I’m just wondering who wants to live in this small town, even if you can commute to the larger cities. Rents are high enough that I could buy newer, used 16x80 and sell them to residents using the cash program for used homes. Just wondering if the demand will be there due to the size of this small town. Thoughts?
Sounds like a good opportunity. I have no concerns because the town is very close to the larger part of the metro. Best bet is to run a test ad and count the number of calls. Trouble right now is you may have fewer responses due to the coronavirus stay-at-home orders, so your market study may be negatively biased. If you get a good number of calls despite the coronavirus, you are golden.
I have a park similar to the one you are considering buying - your metro numbers are a little better though. I have good demand - my guess is that you’d have good demand as well. Like mPark said, do a test ad. I also agree that your study could be biased due to the stay at home order so you’ll have to take that into consideration.