34 Space Park. 10.9% Cap rate.

Lot Rentals only. No Park Owned Homes. 31 Spaces Occupied. Bluebonnet is a 34 space Park in Alice. Texas. All of the spaces are large and are Mobile Home Spaces, not RV spots. Alice is an Oil town in South Texas that has several Major Oil Field Service Companies, like Schlumberger, Baker Hughes, Weatherford International, and Smith International, to name a few. In fact, the online yellow pages lists 146 Oil Field Service Companies in Alice and the surrounding area. These companies are servicing the drilling and operational activities in the Eagleford Shale oil play in central and south Texas.

The Park was very run down and neglected and the owner had died from a heart attack. We bought it last December and cleaned it up, including major repairs to the road. We took care of badly neglected maintenance, including tree trimming and a complete clean up of the overgrown fence lines. These are one-time charges that should not re-occur because the maintenance is now contracted out to a professional landscape company. (Attached P&L is for 9 months and excludes 1 time expenses for cleaning up, trimming trees, hauling trash, and cleaning fence lines, and installing power poles so all lots are ready to rent. Other than that it is actual income and expenses to the Park)

We immediately raised the rents $25.00 per month from $160.00 to $185.00 per month + water, sewer and trash (comparable Park market rates in Alice are $235.00 + water sewer and trash.) One Park about 3 or 4 miles out of town gets $300.00, (but it has septic tanks and I do not think they charge for utilities). Water, sewer and trash pickup is provided to the Park by the City of Alice and the trailers are sub-metered. The water, sewer and trash pickup is billed back to the tenants.

The rents should be at least $235.00 and should be raised another $25.00 up to $210.00 in January and they will still be $25.00 under the market for the other Parks in Alice. The Park should have continual increases over the next several years as the other Parks are raising rents.

SERIOUS INQUIRIES ONLY. NO OWNER FINANCING. .

DISCLOSURE: I am one of the owners. I am an Attorney and a licensed Texas Real Estate Broker