Contact Information

Jon Fisher

License: 471.020503 (IL) 18000549 (IN) 117228 (SC)

Mobile Home Park Details

  • Price: $425,900
  • Purchase Method: Cash, New Loan
  • Cap Rate: 11.6%
  • Property ID: 1271941
  • Posted On: Jun 15, 2020
  • Updated On: Apr 5, 2021

Property Description

I'm proud to introduce Town & Country (T & C) mobile home park for your consideration. T & C is located in Rochelle, IL. It is a "reclassified" 24-pad mobile home park that is on city water & city sewer. Currently the park has twenty-one paying tenants making it 87.50% occupied. All twenty-one tenants own their own trailers. The pad rental rate for T & C is $365 per month and it was last raised in December of 2019. It is the belief of the listing agent that this could be increased by the next ownership group. So let's talk about T & C. In addition to being on city utilities, this park is close to manufacturing jobs and a large meat packing plant. This park has been stable as a direct result of its proximity to jobs for the tenants of this park. The current tenants are all paid up and current with their rent. The present tenants predominantly pay with money orders that are mailed out in pre-addressed stamped envelopes provided by the current owner. As I mentioned earlier, T & C has been reclassified to a 24-pad mhp. I originally listed this park as a 30-pad mhp earlier in the fall of 2020. However during the due diligence portion of our initial contract, it was discovered that the park was not in compliance with the city of Rochelle. This park will need some work done to bring it back into compliance and ensure a long future as a mhp in the city of Rochelle. 1st off...there are presently six trailers that are located in a floodway. The Illinois Department of Natural Resources and the City of Rochelle are in agreement that trailers can no longer be located in the flood way on the west side of the park. That is why the park is being reduced from a 30-pad park to a 24-pad park. There are several trailers that can be moved from the west side of the park to the interior portion of the park. However it was also discovered during the due diligence stage that the main water line in the park was not compliant with the current regulations established by the city of Rochelle. As a result...prior to any new trailers being brought into the park...or any of the current trailers on the west side of the park being moved into the interior circle of the park, the park must upgrade to a 6-inch water main. We have quotes from two contractors to make these repairs, and the asking price is being reduced in a manner to make these repairs worthwhile for the next ownership group. We have lowered the asking price $149,100 and feel that we are appropriately priced as the yearly income is NOT affected at all by the reduction to 24-pads. The park consists of 4.72 acres. The roads thru the park are gravel and are considered to be in good condition. Also due to the flood zone that goes through the park, the city is requiring the ownership to keep the roads gravel which should greatly reduce the cost of road maintenance going forward. Each pad has its own meters for electric, gas, & water. All utility bills are billed directly to the tenants from the supplier. The water pipes are a combination of plastic & galvanized. The current owner maintains the roads in the park. Tenants are responsible for mowing their own pad. The park owner removes snow as necessary. There are currently no vacant trailers on the premises. None of the trailers are behind in their taxes or rent. All of the trailers have skirting. T & C is an all-age park. This transaction will require cash or financing as the owner is not receptive to any form of owner financing. Due diligence financials will be limited as the owner has multiple investment properties running under the same account for tax purposes. This is a great smaller park for both beginner and experienced mobile home park owners. It is a low cost park that should be easy to manage for the next owner. The park has a manager who gets a reduction in her monthly pad rental. She speaks fluent English and has proven valuable to the current owner in communicating with tenants as needed. She would most likely like to continue on in that position with the next ownership group. We will provide copies of the bids to upgrade the water main, as well as all correspondence with the city of Rochelle, inspection reports, city attorney comments, etc. We also welcome communication with any of those offices to assure you that the city of Rochelle will be mhp friendly to the next ownership group. That have stated that they need more affordable housing in their community and they are committed to working with the next owner in regards to making the park continue to be successful going forward. The seller who is in his late 70's has owned this park for 20 years, and is ready to slow down. Park is being sold "as-is".

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Park Information

Community Type: All Age
Number of MH Lots: 24
Total Occupancy: 88.0 %
Average MH Lot Rent: $365
Size: 5 acre(s)

Financial Information

Gross Income $90,600
Operating Expense $23,500
Net Operating Income $67,100
Expense Ratio 25.9 %
Debt Info

Lot Information

Singlewide Lots: 24
Doublewide Lots: 0
Triplewide Lots: 0
Park Model Lots: 0

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: 0
Average Rent for Park-owned Homes: $0

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