Thanks @Paul Moore ! Yes, I talked with the owner who has little motivation to sell at this point. I've left alone for now, but I'll keep in touch with him. I'll give some of my findings below if you're interested.
Here is the Good & the Bad
THE GOOD:
- 60 Acres
- around 200 sites
- Was 80% full at one time
- Paved roads (decent shape)
- Good location in relation to City of Selma
- Self Storage on site with 26 units (18 large & 8 small)
THE BAD:
The park is in rough shape.
Major repairs:
- - Septic Lagoon isn't working (he said 10K to get working ...I'm thinking triple that number)
- - Water is city owned, but the city won't turn it on until all the leaks have been fixed. He has no idea where the leaks are or how many. (all underground) He put a small well in one part of the park, but it doesn't cover the whole park.
- - 31 trailers in total ruin
- - 14 trailers that could possibly be repaired or sold (5k+ per trailer)
- - 11 trailers people are living in (5 tenant owned - and the rest are owned by park)
- - Before COVID renters were paying $200 /month
- - Trash everywhere and lots of land clearing to get it back up to par
Other Issues:
- A lot of theft
- Nobody currently paying rent because of COVID and he cannot evict
- No financials on the operation
- No water meter at trailer
- No agreements with renters
- He has 480K in it - and said he wouldn't entertain anything less than 400k
The amount of work to get it up and going again and the lack of current revenue makes it hard to justify anything around that number ...in my opinion.
I've just let it be for now as he either needs to have pressure from local environmental agencies, etc to get rid of it for a reasonable price..... as, he is just "sitting" on it.
I can tell he wants out, but just doesn't think he should take a big loss on it.
Any feedback on my thinking is appreciated!
