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Mobile Home Park Details

  • Price: $575,000
  • Property ID: 1187125
  • Posted On: Feb 5, 2020
  • Updated On: Feb 19, 2020

Property Description

Butternut Court Mobile Home Park resides less than 10 minutes outside the inner city of Warren, Pennsylvania. It is located near the Alleghany river and Alleghany National Forest. This quiet, well-maintained park, has a strong rental demand with high occupancy year-round. The park features 35 mobile home pads and currently has only 1 space that is unoccupied. Butternut Court Mobile Home Park is spread over a parcel consisting of 4.38 acres of land.
Butternut Court is a turn-key, pad-rent-only opportunity that offers investors a strong cash flow and double-digit returns on total income. Rental rates can be increased to $195 per month to meet market rates in the area. Current ownership is paying for sewer, which can be passed through to the tenants with third party billing in the future.
The park uses a city sewer line, which is less than 20 years old, therefore they are all plastic and have zero operational issues. The water lines are all copper and less than 20 years old too. The water company directly bills each home. Additionally, the gas lines were all replaced 2 years ago and have zero issues.
We are offering the community at a 7.29% CAP rate on lot rent only. All expenses in, we are valuing the park using a 39.56% expense ratio. This park has a total return (IRR) of 17.34%. The asking price for this community is $575,000, with financing of 25% down, and a 20 year amortization at 4% interest. The pro-forma in our underwriting assumes bank debt with the following terms, which we believe is realistic.

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Park Information

Community Type: All Age
Number of MH Lots: 35
Total Occupancy: 97.0 %
Size: 4 acre(s)

Utility Information

Water: City
Sewer: City

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