I am looking at basic smaller park that is almost all POHs. Most of the homes are really quite old, with several from the 1960s, several from the 1970s, and a few from the 2000s. But, the location is not bad, being in the middle of a town of 22,000, close to amenities. Occupancy seems to be 87%.
The lot rent in the area averages $250, and this park is charging total rent averaging $450 on its POHs. But, looking at the prospectus, the repair costs are enormous, like $124 per month per POH, which may be an underestimate. I do not know yet why the repairs are so high. I understand $124 is less than the $200 difference in POH rent and lot rent, but I am not sure $76/month is worth the hassle of handling repairs constantly.
Given the situation, I think the asking price is too high at this time, but is there any way to make a situation like this work? What would you do with all of the old homes?