Mobile Home Park Details

  • Purchase Method: Cash
  • Property ID: 1405078
  • Posted On: Mar 11, 2021
  • Updated On: Apr 20, 2021

Property Description

Here’s a quick overview of the Tennessee mobile home community we have for sale.

Property Address: 39 Hilltop Dr, McKenzie, TN 38201, USA
Total Number of Developed Lots: 16
Total Number of Occupied Pads: 11
Mobile Home Community Name: Hilltop Trailer Park
Type of Utilities: Sewer-Septic, Water Municipal
Average Rent: $450
Current Yearly Gross: $59,400
Asking Price: $169,000
Operating Expenses: ~$15,000
Yearly Property taxes and insurance: $3,439 

Notes
1. Park pays for the water bill each month from the city of McKenzie. There is only 1 master meter.

2. The park is on septic tanks. There is 1 septic tank per 2 mobile homes. Park pays for the septics to be cleaned out when necessary. Average about 1 clean out every couple years. no known required repairs or maintenance. 

3. Each tenant pays their own electricity bill to the city. Each unit has its own electrical meter. The park does pay about $37 each month bc we have a street light and electrical that runs to our storage building. 

4. No gas.

5. Each tenant pays their own trash. The city supplies them with a garbage can and trash is collected each week. 

6. Water lines are copper. No current leaks.

7. Sewer is made of PVC. No issues.

8. Park has not raised the rents in 3 years. 

Background
An investor reached out to us looking to sell one of the mobile home parks in his real estate portfolio. The seller describes himself as realizing he’s “not a mobile home park owner” and is looking to sell quickly.

One thing we discovered early on in our process is that despite being in a semi-rural area, there is unmet rent demand across the county. We spoke with 2 different Sheriff deputies as well as a local real estate agent and representatives of the City and County government. People need a place to live, even in rural areas!

Tenants
Every tenant is on a Rent to Own agreement. Of the 5 empty trailers, there are 3 that need ~$5k of work to make habitable and the other 2 have water damage. Those will cost more but we didn’t get estimates on just how much. You could also consider removing the 2 and bring in used trailers or get a Lonnie dealer to do that for you.

Due Diligence
We have a complete due diligence package including Bank Statements, Account Ledger, Rent Roll, Tax Returns, Titles and more. We also have several pictures to share.

Here are some quick facts about the park:

Owner has all titles to trailers
1 septic per 2 MH homes
Possible to add more trailers to the land – NO ZONING RESTRICTIONS
Strategy
The purchaser of park could consider moving to a resident owned community asap (e.g. sell the trailers to the existing tenants) immediately upon purchase and sell the trailers needing repair as handyman specials.

This park can be managed remotely and, if you’re looking to do this remotely, note that there is property management in place already that has strong connections to contractors and other key commercial property resources. You can also consider connecting with an asset manager.

Terms
Terms are all cash, 30 day close.

Amenities

  • Storage
Interested in purchasing this mobile home park? Get pre-qualified for a loan.

Park Information

Community Type: All Age
Number of MH Lots: 16
Total Occupancy: 68.0 %

Financial Information

Gross Income $59,400
Operating Expense $15,000
Net Operating Income $44,400
Expense Ratio 25.3 %
Debt Info free and clear

Lot Information

Singlewide Lots: 16

Utility Information

Water: City
Water Paid By: Park
Sewer: Septic

Park-Owned Homes

Number of Park-owned Homes: 16
Average Rent for Park-owned Homes: $450

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