Mobile Home Park Details

  • Purchase Method: Cash
  • Property ID: 1226561
  • Posted On: Mar 10, 2020
  • Updated On: May 27, 2020

Property Description

Paragon Properties is the ultimate “mom & pop” mobile home park. It is owned by a pair of gentlemen who married sisters. The park has been part of their investment portfolio for well over 30 years. The four owners are now between the ages of 78 & 84 years young. The current manager is 84. Although it is a difficult decision for them to sell the park due to the cash flow that it is still generating, they have decided to put the park on the market in order for them to slow down and enjoy retirement.

Paragon Properties is located in Hammond, IN. Hammond is located just 24 miles south east of Chicago, and is the 8th largest city in the State of Indiana.

Paragon Properties is a 27 pad mobile home park that is roughly 75% occupied. The park was created in 1947. The MHP owns 26 out of the 27 trailers in the park, and they average $475 per month. There is one tenant owned trailer who only pays $145/month in pad rental (They haven’t raised the rate on them in over 30 years!) The park is on city water & city sewer.

The trailers in Paragon Properties are older and smaller. The park does have four “newer” trailers that I am estimating to be less than ten years of age. The park also comes with an office that could be converted into an additional rental space. The back side of the office is rented for $450/month. The park also has a single family residence on the property that has been converted into two units. These rent for $550 & $650 respectively.

The park is currently generating nearly $11,000 per month in gross income. With a little TLC getting some vacant trailers brought back online, the park could be generating nearly $14,000 per month in gross income.

The park is priced to sell quickly. 30 days max due diligence. This park most likely needs to be a cash transaction as bookkeeping might not be up to par for traditional bank financing (as is common with mom & pop parks of this generation). Due to the age of the sellers they are not interested in entertaining offers consisting of owner financing for obvious reasons. Cash on cash return will be outstanding for the next owner on this little park that has some upside.

Location

Chicago Metroplex

Amenities

  • Laundromat
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Park Information

Community Type: All Age
Number of MH Lots: 31
Total Occupancy: 80.0 %
Average MH Lot Rent: $475
Size: 1 acre(s)

Financial Information

Gross Income $129,240
Debt Info

RV Information

Number of RV Lots: 0
Average RV Lot Rent: $0

Utility Information

Water: City
Water Paid By: Tenant - Individual Service
Sewer: City

Park-Owned Homes

Number of Park-owned Homes: 27
Average Rent for Park-owned Homes: $480

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