More owners are willing to hold paper on smaller parks because they are harder to sell-easier to buy.
I would not recommend a first time park buyer buying ANY TYPE of property with well water and septic/treatment plant as serious dd is necessary! (avoid the infrastructure issues)–almost always to replace part of a sewer line is cheaper than a septic issue.
3.Low cap is great when you want to sell, but when buying ill take the higher cap.
You can pay less for management on a small park. Everyones management style is different and I see Jim provides certain/same services for his smaller park and his large parks. I for example will only pay 1/2 lot rent for a small park-not to get off topic- but its a defined number of duties for a set fee-pre pay cell, thats it–no email/fax/internet etc. They collect the rents and I record them through my office so they do not need software etc.
The fact that MANY investors buy only 35 (or 50 or 100) and up is an opportunity for savvy small investor!!..Less competition on smaller parks…Higher cap, means more $$$$ in your pocket.- I try to find tiny parks near my larger ones so when I do fly out it not to see 10 spaces, rather 110.
Bottom line…a larger park wont do you any good if its costing you money to operate. It comes down to the numbers. yes a vacancy in a smaller park hurts more than in a larger park, but if you bought the small park at a 12-14 cap (do your homework) and the large one at a 6-8 cap you will still flow.(if it doesnt do not buy it!) I started on a 27 space park and refi’d to another 25 space park and then refi’d again to a 17 space park and then refi’d to two 70 space parks, Without the little guys I would not have the big guys…I love little parks. .my 2 cents…