34 Space Park. Lot Rentals only, no Park Owned Trailers. 31 Spaces Occupied. 10.25% Cap rate.

Bluebonnet is a 34 space Park in Alice, Texas. All of the spaces are large and are Mobile Home Spaces, not RV spots. Alice is an oil town in South Texas that has several Major Oil Field Service Companies, like Schlumberger, Baker Hughes, Weatherford International, and Smith International, to name a few. In fact, the online yellow pages lists 146 Oil Field Service Companies in Alice and the surrounding area. These companies are servicing the drilling and operational activities in the Eagleford Shale oil play in central and south Texas.

The Park was very run down and neglected. I bought it and cleaned it up, including major repairs to the road (retopping bad road sections) and immediately raised the rents $25.00 per month from $160.00 to $185.00 per month (comparable Park market rates in Alice are $235.00 + water sewer and trash. One Park about 3 or 4 miles out of town gets $300.00, (but it has septic tanks and I do not think they charge for utilities). Water, sewer and trash pickup is provided to the Park by the City of Alice and the trailers are sub-metered. The water, sewer and trash pickup is billed back to the tenants.

The rents should be at least $235.00 and should be raised another $25.00 up to $210.00 next December and $25.00 more 6 months after that. The Park will still be at least $10.00 per month under the market and should have continual increases over the next several years as the other Parks are raising rents.

Owner is a Texas Licensed Real Estate Broker.