Mobile home park - good cap rate - horrible trailers
Hi everyone. I'm looking at a 42 spot, 100% full, mobile home park that checks out financially at 8% cap rate. The financials don't bother me at all. However, we just drove through it and the trailers are for the most part HORRIBLE! Old, rusty, missing/boarded/plastic covered windows and/or doors, decks falling apart, bad roofs, etc. 4 of them are park owned - and are newer. We saw one "Beware of Dog" sign and several roaming cats. This looked more like a trailer park junkyard than someone's homes. The park itself was well kept, but the trailers and their "yards" were not. There were also 2 of the newer ones (probably the park owned ones) with signs that said "Rooms for Rent". All of the spots are big enough for double-wides and there are a few of them there too.
I'm completely new at this trailer park shopping thing. For those of you that have experience, what would you do if you were to purchase it? I would like to inspect each home (exterior) and give a list of repairs to be done and when they need to be done by, however I don't know how well that would go over. I'm thinking of contacting local dealers and seeing what the market is for new trailers and if people are looking for spots or if it's a take-whoever-you-can-get market. I certainly don't want all of these people to decide it's not worth the effort and take off and leave me with their messes, but I also would like these places to look at least slightly decent if I were to buy it. I can't imagine there are many that have any value in them right now.
Any advice/experience would be appreciated.