We are looking at a park where the numbers are excellent at its current occupancy. The big turnoff is that it has 50 vacant lots out of 100. Its an REO deal and the lender who took it back is willing to offer financing to us but we know our exit strategy would be tough unless this lender allows us to assume the loan to a future buyer. The park was completely mis-managed for years and the previous owner did nothing but collect rents once a month. When the lender took it back they tore down 25 homes and spent a ton of money trimming trees and repairing roads. Other parks in the city have high occupancy.
We do not have any intentions of bringing in 30 homes to get it to 80% occupancy (probably plan on bringing in 10-15 homes max) so I was wondering if anyhone has ever removed empty lots so that you could bring up occupancy. What would be required to do that? would you have to tear out the pad and cap off the utilities and then contact the city in regards to changing the permit? We were also thinking of giving empty lots that are next to occupied homes and letting them take care of the upkeep.
Let me know your thoughts and if anyone uses this strategy to reduce empty lots.