Pillar 1: Submarket & Demographic Feasibility
- MSA population above 50,000 with a diversified local employment base.
- Median single-family home price above $200,000.
- Average two-bedroom apartment rent above $1,100/month.
- Positive or stable five-year population and wage growth trends.
Pillar 2: Utility Ownership & Physical Infrastructure
- Confirm public vs. private water and sewer connections.
- Complete a continuous video camera scope of all main sewer trunk lines.
- Conduct water pressure testing across the highest and lowest elevation pads.
- Inspect electrical pedestals for minimum 100-amp service capacity.
Pillar 3: Municipal Zoning & Unconditional Replacement Rights
- Secure a formal written Zoning Verification Letter from the municipal planning department.
- Confirm legal non-conforming (grandfathered) status.
- Verify written confirmation of the right to replace homes without special variances.
Pillar 4: Financial Audit & Bank Reconciliation
- Audit 24 months of historical bank deposit statements against seller rent rolls.
- Normalize operating expenses to realistic 35%–40% baselines.
- Audit historical utility billing statements to detect underground line losses.
Pillar 5: Environmental Site Assessment
- Complete a Phase I Environmental Site Assessment with a certified consultant.
- Review historical aerial photography and state underground storage tank registries.
Pillar 6: Physical Grounds & Roadway Condition
- Inspect internal road base compaction, asphalt wearing course, and drainage swales.
- Audit tree canopy for dead limbs and root interference with underground pipes.
Pillar 7: Title, Survey & Boundary Verification
- Secure an ALTA/NSPS land title survey showing boundaries, easements, and setbacks.
- Verify that all existing homes and utility lines sit strictly within legal parcel boundaries.
Pillar 8: Tenant Lease & Home Title Audit
- Audit all written tenant lease agreements and resident background check files.
- Inspect clear titles and bills of sale for all park-owned home inventory.
Key Takeaway
Every pillar must clear before capital is committed. A single unresolved item — permits, title, or sewer — is grounds to terminate.