Trailer Park Aquisition
I would love to hear from any investors who have experience in owning a trailer park (land only). I am considering one that is advertised as a 10% cap rate, listed at $720,000 with 12 pads that are all rented at $600 per. The listing states that the owner would be responsible to maintain the well and septic system and that there are a new pump and water holding tank as well.
I have been looking for a deal like this where the owners own the trailers and only pay for the pad. Can anyone share:
1) How hands-off are these investments?
2) Do trailer owners get evicted like a regular tenant?
3) Do trailer owners tend to stay or do they move around every few years?
Any insight would be greatly appreciated, I have a SFR portfolio of 10 homes and I am looking to expand into other cash flow areas.