I’m struggling to find a reasonably good deal on a small park (30-40 spaces) in my home state of Florida. What other states would be good to look into?
Timothy, my Husband and I own 2 Mobile Home Parks in South Carolina.We try to keep up-to-date on what is available in South Carolina and the surrounding states. We like to look at the listings for Florida, but find that they have lower cap rates with higher lot rents.South Carolina, North Carolina, Georgia and Alabama have some good Mobile Home Parks for higher cap rates with lower lot rents.Now granted the Cash Flow will probably be less in the above states versus Florida, but you will be paying less for the MHP.We wish you the very best!
Based on the Quick Deal Reviews that people have brought me over the past decade, Florida is one of the hardest states in the U.S. to find a good deal in. The pricing is always too high for what you get. We are not impartial – we like the Great Plains and the Midwest. That being said, all 49 states work fine, except that you have to be extra careful in Louisiana, Mississippi, Alabama and Georgia. The rents can be low there, and the economy weak in less than the largest cities. Plus, the exit strategy is tougher there, as there’s not as many buyers and lenders.
For clarification, I said 49 states because there are no parks in Hawaii.
Thank you all for the comments!
There are a lot of great parks in the upper Midwest. My disclaimer is I’m likely biased because that’s where I live. But in reality, the economies of many of the metro areas in the upper Midwest are very strong with dependable workforces. The parks to buy won’t be found for sale online through LoopNet or the other popular sites. Word of mouth or getting in the car and visiting parks, that’s where the deals are at.
What i noticed in Florida close to the big cities parks sell for low cap rates but most will be redeveloped so the buyer / developer does not care. They make plenty in the end.
other parts of florida are small town with for lack of a better word hilbillies. No jobs, nothing to do and the seller is disolusional on price