Mobile Home Park Details

  • Purchase Method: Cash, Seller Financing, New Loan
  • Cap Rate: 17.0%
  • Property ID: 1334881
  • Posted On: Oct 5, 2020
  • Updated On: Dec 5, 2020

Property Description

Wheel Estates is a 41-pad, all age community located in Montpelier, IN. Montpelier is centrally located in NE Indiana and is approximately 90 miles from Indianapolis, 80 miles from Dayton, OH, and 40 miles from Fort Wayne, IN. The park is zoned for a mobile home park (415) and appears to be conforming. The current owner believes the park was constructed back around 1980, and they have owned the park since 2017. As I mentioned previously the park has 41 pads. At the present time the park is currently 58% occupied, providing some value-add opportunities for the next owner to continue the infill project started by the present owners.
Of the 24 occupied pads, nine of them are TOH, fifteen of them
are POH. The average pad rental rate is currently $225 per month. The POH's rent for $300 (one bedroom), $400 (two bedroom), & $450 (three bedroom). The current pad rental rates have not been raised since 2012 so there is probably some future cap to capture with an increase in rental rates. The POH rates have remained the same since 2017. The park is on city water & city sewer! The underground pipe material is PVC. Each pad has its own electric, gas, & water meters. The electric & gas bills are billed directly to the tenants. The water bill is billed to the park and then back-billed to the tenants. The roads through the park are paved. Seller classifies two of the roads to be in excellent shape, and the remaining road to be "a little rough". The city maintains two of the roads, the park maintains the remainder. Tenants are responsible for mowing their own pads. The city plows snow for all three of the roads. Thetenants have off-street parking as each pad has a gravel parking area. None of the trailers in the park are behind held on back taxes. Of the 24 tenants in the park, three of them are behind in rent. One individual is an elderly man that the current owner hasn't had the heart to evict. He is behind in his rent but "slowly catching up". Two other tenants are behind in rent, but just by one month. Since 2017 the owners have been quite active in improving this mobile home park. They have installed new electric transformers, added metal skirting to the park owned homes, removed old trees, added seven trailers, and cleaned up the park from junk & debris. The owners also did a great job of cleaning up the bad tenants that they inherited from the previous ownership group. When asked what projects they would tackle if they were going to continue owning the park going forward, they responded with: Bring in additional trailers, start a rent-to-own program, add more gravel to the tenants parking spots, and resurface the middle drive with sealant. All very doable projects for the next ownership group to tackle. The listing agent has knows the owners of this park for 25 years as they both have been highly involved in the world of agriculture. The current owners have a highly diversified portfolio that includes grain farming, livestock farming, a restaurant, & rental properties. They are extremely busy. The only reason that this park is for sale is that is is the furthest investment from their residence, and they are wanting to roll the equity from this park into something closer to home. Seller prefers an all-cash offer, but will entertain owner financing. If you bring the listing agent an owner financing offer, please make sure it meets the following requirements: Minimum 6% interest, minimum 20% downpayment, maximum of a five year balloon...All cash offers will receive precedence over owner financing offers. The price listed in this offering memorandum is for an all-cash transaction. If you are preparing an owner-finance offer please factor in a little premium above & beyond the all-cash listing price.

Location

Montpelier is a city in Harrison Township, Blackford County, Indiana. This small rural community, the county's first to be platted,
was established by settlers from Vermont, and is named after
Vermont's capital city of Montpelier. Montpelier was a central
participant in the Indiana Gas Boom, as natural gas was discovered
near the community in 1887. More importantly, the county's first
successful oil well was drilled on the south side of Montpelier in
1890. Its population quickly grew from 808 in 1890 to about 6,500
by 1896. The Gas Boom, mostly an oil boom for Montpelier,
gradually ended during the first decade of the 20th century. Like
many boom towns, the city's population has never matched that of
the boom years. The city's population was 1,805 at the 2010
census. However, the city's population stabilized many decades
ago, and the community has multiple industries and an active
community association. Montpelier is located near the former
Godfroy Indian Reservation, and a statue of an Indian is featured
prominently in the downtown district.
Montpelier has a long history of racing. During the 19th century,
there were at least two race tracks for horses near Montpelier.
Montpelier's own horse track was established in 1903.[28] This
track was very popular and drew crowds of 3,000. During the
1920s, a rebuilt track became known as the fastest half mile in
Indiana.[28] During the 1950s, the track became a stock car racing
track, but reverted to horses in the 1960s. The track closed in 1973,
but reopened in 1985 for stock car races and horse racing. Today,
Montpelier Raceway features sanctioned stock car racing.
Montpelier is located in a rural agricultural area, and has its own
grain elevator. The city also has some manufacturing
establishments, and its major businesses provide employment for
over 400 people. These businesses include Emhart-Gripco, Smith
Consulting, Indiana Veneer, BRC Rubber & Plastics, Indiana Box,
and others. Montpelier also has a 50-acre industrial park.

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Park Information

Community Type: All Age
Number of MH Lots: 41
Total Occupancy: 58.0 %
Year Built: 1980
Average MH Lot Rent: $225
Size: 4 acre(s)

Financial Information (Actual)

Gross Income $114,535
Operating Expense $42,454
Net Operating Income $72,081
Expense Ratio 37.1 %
Debt Info

Lot Information

Singlewide Lots: 41
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 - Submetered
Sewer: City

Park-Owned Homes

Number of Park-owned Homes: 15
Average Rent for Park-owned Homes: $400

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