Wondering which one is the best deal

Park# 1

58 lots
24 vacant
population : 89k
1hr to pop of 400k
county water master meter
septic tanks (county expanding so sewer will be avaiable)
paved rds
lot rent 210
no park owned models
NOI- 62664(per owner)
local rents 280 + water
4 parks within 15min (with vacancies)
price 470k

Park #2
32 sites
3 vacant
4 park owned(rented)
master meter water(submeter but will need to replace some meters)
septic(sewer avail for 2700)
paved rds (some in need of repair)
NOI-- 58004
lot rent 190-207
local rents 240
4 sm parks within 15min (low vacancies)
pop 12k
pop within 40 min 400k
price— 600k

Both properties check a lot of our boxes. Our worry is that being this will be our first park we want to tread carefully. Our worry about #1 is although it has an upside 24 lots may take a alot to fill since there are so many vacancies in the other nearby parks. Although it has a higher net and upside

#2 seems like a more secure bet but we worry about the population being lower and an increase cost for less net.

Any and all advice is greatly appreciated Thank you!!!

The “best deal” on these will depend on your goals and risk appetite / tolerance.

Park 1 looks like it has some market risk, but if you have time, money to fill pads, and patience you could get it filled up and have a nice turnaround park. There will be many risks to address prior to close, and also many things to improve to streamline operations and increase your NOI and CAP rates after you takeover. There also could be challenges getting a park like this financed due to the occupancy, so be prepared to approach more banks and brokers to get it pushed through.

Park 2 looks like it’s very stable and will produce well from day one. It will need some investment, but overall lower overhead and day to day work comparatively. There are parks that do well in towns of 1000 people. 12K is plenty and the rents are competitive. Do your test calls during feasibility to confirm the market strength.

Use the approaches from the MHU diligence guide to negotiate both of these parks and get them under contract if you haven’t already. You will find in a lot of cases the owners records are completely different than advertised. If Park #2 Seller refuses to show you bank statements and tax returns will you still close on it? Probably not, in which case the decision between the two parks is easy.