Mobile Home Park for Sale in Pennsylvania 

$1,250,000 

Pine Tree Mobile Home Park is located near the western Pennsylvania town of Indiana about 50 miles east of Pittsburgh.  Indiana is the birthplace of Jimmy Stewart and is very much like the town in the movie, It’s a Wonderful Life, in which he starred.  The town is home to Indiana University of Pennsylvania, the largest of the 14 state universities.  Pine Tree Mobile Home Park is situated outside of town on route 422 between Indiana and the small town of Shelocta. The original section of the park was built in the mid-1960s to house construction workers for the power generation station located about 5 miles away. The park expanded to 98 lots by the early 1970s and remained that size until 2 years ago when we added a new section with 16 new lots. Older homes have been removed from the park over the past few years leaving 77 lots currently rented. The new section has had two brand new double-wide homes moved in. All lots have individually metered city water and sewage and there are an additional 10 water and sewer taps in place for future expansion. The water system was installed in 1990 and the sewer system in 2000 leaving no worries about broken or leaking pipes. The new section has all underground utilities and large lots to accommodate large double-wide homes. Please see the photos below showing some of the nicer homes in the park. 

The chart below shows the revenue and expense information from 2006 and 2007, and the current status with the lot rent raised to $155 per month in January.  There were expenses for lot preparation in the new section of the park totaling about $15,770 in 2006. We currently manage the park ourselves and do the winter road maintenance.  Absentee owners will need to hire winter road maintenance, summer grass cutting, and a park manager to collect the rent.  These expenses are estimated at about $2500, $1000, and $3500 per year.  Two parks within 5 miles have been purchased within the past two years and subdivided into owner owned lots.  These lots have been sold for $20,000 to $30,000 apiece with one park completely sold out.  A commercial appraisal on 102 lots the park was done in 2005 that came in with a value of $1,100,000.  With the additional 12 lots in the new section and the additional 10 water and sewer taps, the asking price is $1,250,000 for a quick sale. 

This is a Cap rate of 10% with massive additional potential; 37 completed lots to rent, 10 additional lots to complete with water and sewer taps already in place, and land for at least 25 additional future lots.  You should expect to put 20% to 25% cash down and qualify for the rest in a bank loan.  You will need at least $250,000 plus closing costs plus good credit to get financing.  We will consider up to 10% seller financing only if you have at least $150,000 in cash to put down. Please respond only via email to pinetreepark@netzero.com and ONLY if you are serious about buying this park.  Please detail your financing plan, background, and any other important details in the email.  We will not respond to voice mail at all or to email without the above details.  We are looking for a quick and easy sale with a closing 45 to 60 days after a signed agreement. 

 

			2006		2007		Current
Number of Lots Rented			82		85		77
Lot Rent per Month			$         115		$115 - $135		$         155
Rent Revenue			$113,781		$   117,340		$   143,220
Operating Expenses
	Maintenance and Supplies		$      4,136		1498
	Insurance		$      4,784		4681
	Legal and Professional		$         980		1356
	Repairs		$      4,537		4282
	Taxes		$      4,043		4064
	Street Lights		$      2,484		2596
	Fuel		$      1,196		1256
	Misc		$         597		2189
Total Operating Expenses			$     22,757		$     21,922		$     22,000
Operating Profit			$     91,024		$     95,418		$   121,220
New Lot Costs			$     15,770		0		0
Cap Rate @ 1,250,000							10%

Please look at the following photos of the park.