Contact Information

David Boshart

Steel Recovery Solutions

Mobile Home Park Details

  • Price: $150,000
  • Purchase Method: Cash
  • Cap Rate: 50.0%
  • Property ID: 1364273
  • Posted On: Dec 4, 2020
  • Updated On: Jan 10, 2021

Property Description

The park contains 11 spaces with utilities and 300' of chain link fence bordering the back of the property. I currently have two tenant owned homes paying $150/month which have been approved by our finance company to finance the purchase of their lots and home for a total of $15,000 each which I am completing their applications now and expect to close in 45 days I have two other homes that I own and am rehabbing which I estimate lot and home for one to sell for $30,000 and another for $40,000 so my total projected revenue from Sale of homes on existing lots will be
$100,000 less estimated rehab costs of $10,000 for rehab which has been approved by the Mayor for a net of $90,000.

In addition I have 7 remaining lots that the City of Cowarts has approved for me to put RVs on. If I choose to rent those lots to customers to bring their own units I can get appx $250-300/month. However if I purchase 7 units at an estimated cost of
$7500/each or $52,500 plus estimated rehab of $1000/unit for $60,000 for home purchases my gross rental income will be $450-$500/ month or appx $475 x 7+ or $50,000 plus $90,000 above or $140,000 less the $60,000 to purchase and rehab the units expenses or a projected net Cap rate of appx $80,000 for YE 2021 of $80,000 divided by $150,000 of appx 50%.

If I rent the 7 extra spaces to owners at $250-$300 per month with no outlay for unit purchases gross income would be $1925/mo x 10+ months or $23,100 for the year for an estimated cash on cash return of $23,000 plus $90,000 for lot and home sales would be
$113,000 divided by $150,000 or 75% for Y/E 2021 but continuing
revenue for Y/E 2022 would be only $23,000 vs $50,000 for 1/1/22 and beyond.

I am also willing to PARTNER in a Joint Venture with an investor that wants me to use my staff and financing sources and rehab/maintenance sources for a cash investment of $75,000 to purchase 1/2 of the business from me plus a loan to the partnership of $60,000 for RV Purchases and Rehab to be repaid at time of sale or from 1/2 of net monthly rental
income or sales revenues until paid in full. I can manage everything
including park, cleanup, home rehab, collection of rents- financing two tenants there now to purchase their lots so they can own their
own lot and home at the same rate they are paying for rent currently.

I am also a mobile home dealer that can provide new or used RVs and mobile homes at wholesale pricing if buyer or partner desires

There are three community colleges in the area with a shortage of housing for students listed below providing high demand for housing in the greater Dothan, Alabama Area

Location

Great location near Alabama College of Osteopathic Medicine, Fortis College and Wallace Community College and all other businesses in Dothan. Alabama
AL.
,

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Park Information

Community Type: All Age
Number of MH Lots: 11
Total Occupancy: 10.0 %
Year Built: 1967
Average MH Lot Rent: $350
Size: 3 acre(s)

Financial Information (Pro Forma)

Gross Income $140,000
Operating Expense $70,000
Net Operating Income $70,000
Expense Ratio 50.0 %
Debt Info 0

Lot Information

Singlewide Lots: 2
Doublewide Lots: 2

RV Information

Number of RV Lots: 8
Average RV Lot Rent: $450

Utility Information

Water: City
Water Paid By: Park
Sewer: Septic

Park-Owned Homes

Number of Park-owned Homes: 2
Average Rent for Park-owned Homes: $400

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