purchasing park

[KL Wilson]

Chrissy,

I am considering purchasing an older park that is in much need of repair. The current owners are closing the park down.

I am wondering what resources I should consult prior to entering into negotiations. What legal ramifications are there for the current residents? etc.

Where should I start first?

Thank you.

K.L. Wilson

[chrissy]

What a project this could be. And much more than can be adequately covered here. For starters, get an estimate of the total costs of repair. Create a budget based on historical income and projected income. Look at the possibility of rent increases over the next 5 years or so to see how you can increase cash flow. Determine the highest and best use according to the property location, zoning, and other developed areas next to the community. Determine the viability of the homes remaining occupied and rent-producing for the next 5 - 10 years. Look at historical numbers for move-outs as compared to move-ins. Determine if the homesites are large enough to accommodate the newer homes. Identify your target market and decide how you will reach them to fill any current or future vacancies. Explore the economics and demographics of the surrounding area, then decide if it bodes well for continuing the existence of the community. If the community is not already part of municipal water and sewer, look at the potential cost effect of tapping in - both as a mandatory item and also as voluntary. Watch the "Merchandiser" for a full answer after the first of the year. I'll put much more detail in a longer answer for you.