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Mobile Home Park Details

  • Price: $750,000
  • Property ID: 1157668
  • Posted On: Nov 20, 2019
  • Updated On: Jan 23, 2020

Property Description

5412 Eden Lane, Conover, NC 28613 - Mobile Home Estates resides about 40 mins outside Charlotte, North Carolina, and is only a 15-minute drive from Lake Hickory. This quiet, well-maintained park, has a strong rental demand with high occupancy year-round. The park features 36 mobile home lots, with all but two are currently occupied by tenants.
Mobile Home Estates is a turn-key opportunity that offers investors a strong cash flow and double-digit returns of 16.23% cash-on-cash return, and a total return of 22.66% in year one. As previously stated, only two of the lots are currently vacant, and of the 34 tenants, 32 are currently lot rent only, with two tenants being rent-to-own home (RTO's), which started in 2018.
The park currently uses a master meter for their water utilities, which could easily be converted into separate submeters, which would allow the new managers to direct bill water via a third party or by management, and would save roughly $9,000 in water expenses. The current owner is only charging $230 for pad rent, which is well below the market rent for this submarket. We project that rent could be increased by $30 for each of the next two years, and the park would still be able to maintain a low vacancy rate.
We are offering the community at a 8.50% CAP rate based on lot rent only. With all expenses in, we are valuing the park using a 39.93% expense ratio. The seller maintains good books and records and there are only two RTO agreements. The seller ultimately wants to be cashed out, but will entertain seller financing with 27% down, with a 25-year amortization and a 2-year balloon at 4% interest. We are asking investors to submit offers at, or above, $750,000 for the entire park, including the two RTO's and other real property.

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Park Information

Community Type: All Age
Number of MH Lots: 36
Average MH Lot Rent: $230
Size: 5.4 acre(s)

Utility Information

Water: City
Sewer: Septic

Park-Owned Homes

Number of Park-owned Homes: 2
Average Rent for Park-owned Homes: $475

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