Contact Information

Jon Fisher
License: 471.020503 (IL) 18000549 (IN) 117228 (SC)
Photo

Mobile Home Park Details

  • Price: $499,000
  • Purchase Method: Cash
  • Cap Rate: 19.0%
  • Listing ID: 6454134
  • Posted On: Jun 28, 2024
  • Updated On: Jul 5, 2024

Description

Southview Estates MHC is a 26-pad mobile home community located on 8.69 acres on the outskirts of Vandalia, IL. The park was developed in the 2006 and has served the community by offering an affordable housing option since that time. The property is zoned residential improved and approved for seven more homes. The park is not located in a flood zone. The park is presently managed by a resident manager who the owners believe will have interest continuing in that role going forward. The park also has a maintenance man who lives onsite.

The pad size are large and will accommodate 14 x 80 trailers and a few double-wide models. There are currently not any trailers that need to be removed from the premises. Of the 19 occupied pads in the park, all 19 of the trailers are POH's averaging $640/month (including maintenance fee, trash, insurance, & taxes). There are currently zero tenants behind in their rent. The park utilizes leases both annual & month-to-month leases for its residents. The tenants currently pay their rent via check, bank deposit, Cashapp, & Venmo. The park has the titles to all 19 trailers.

PUBLIC WATER & septic (aeriation systems)! The underground pipes were replaced in 2019 when the park was hooked up to city water. The electrical pedestals are believed to be 100 amps. Residents are direct billed for water, electricity, & gas by the utility providers. Garbage, insurance, maintenance, & taxes are built into the home rent. The park is located on a county road and the park owner has no maintenance as a result. The tenants mow their own pads and the park mows the common areas. The tenants move snow in their driveway as needed.

The owner took back the park on January 1st, 2024 as the contract for deed with the previous buyer was defaulted on. Since the owner has taken over he has been quite active in addressing some deferred maintenance issues. Here is a list of everything that he has improved since taking the park back:

1. Remodeled eight homes
2. New furnaces in all of the homes that needed to be replaced
3. New water lines in all of the homes that needed to be replaced
4. New floors in all of the homes that needed to be replaced
5. Sealed all roofs in the park
6. Serviced all aeration systems and added them into a RexVault service plan for all systems
7. New front exterior doors on all homes that needed to be replaced

When asked what improvements he would continue to make if he continued to own/operate the park?

1. I bought material to place four awnings on trailers. I would continue to build awnings on all trailers to keep rain off of exterior doors.
2. New skirting on trailers
3. Paint decks
4. Sell or RTO the trailers to the tenants to eliminate maintenance requirements

As the current owner just took the park back from a defaulted contract for deed, he is not interested in any "seller finance or master lease" offers. The park has been priced for a quick, all cash sale.

Location

Vandalia, Illinois, strategically located within the St. Louis Metropolitan Area, offers a unique blend of small-town charm (population 6,300) and big-city accessibility. As the former state capital, Vandalia boasts rich historical significance, attracting tourists and history enthusiasts. The city's proximity to major highways, including Interstates 70 and 57, ensures seamless connectivity to St. Louis, Indianapolis, and beyond, making it an ideal hub for commerce and distribution. With a supportive local government, affordable real estate, and a growing community, Vandalia presents an exceptional opportunity for investors seeking a promising location for commercial ventures.

The median home cost in Vandalia is $104,800. Home appreciation the last 10 years has been 47.0%. Home Appreciation in Vandalia is up 9.4%.

•Renters make up 28.7% of the Vandalia population
•7.9% of houses and apartments in Vandalia, are available to rent

•The average 2-bedroom unit in Vandalia rents for $880/month.
•The average 3-bedroom unit in Vandalia rents for $1,080/month.

•Vandalia violent crime is 19.8. (The US average is 22.7)
•Vandalia property crime is 33.7. (The US average is 35.4)

•The average income of a Vandalia resident is $18,264 a year. The US average is $37,638 a year.
•The Median household income of a Vandalia resident is $36,064 a year. The US average is $69,021 a year.

Here are the largest employers in Vandalia, IL:

•Vandalia Correctional Center (400 employees)
•Fayette County Hospital (300 employees)
•Vandalia Community Schools (200 employees)
•OctoChem Inc. (100 employees)
•Wal-Mart Supercenter (250 employees)

Vandalia, IL is conveniently located within driving distance of
several major metropolitan areas:

St. Louis, MO: 70 miles southwest (1 hour and 15 minutes by car.)
Springfield, IL: 70 miles northwest (1 hour and 20 minutes by car.)
Indianapolis, IN: 170 miles east, (2 hours and 45 minutes by car.)
Chicago, IL: 210 miles north, (3 hours and 30 minutes by car.)
Evansville, IN: 160 miles southeast, (2 hours and 45 minutes by car.)

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

Park Information

Community Type: All Age
Number of MH Lots: 26
Total Occupancy: 73.0 %
Year Built: 2006
Size: 9 acre(s)

Financial Information (Actual)

Gross Income: $120,300
Operating Expense: $25,500
Net Operating Income: $94,800
Expense Ratio: 21.2 %

RV Information

Number of RV Lots: 0
Average RV Lot Rent: $0

Utility Information

Water: City
Water Paid By: Tenant - Individual Service
Sewer: Septic

Park-Owned Homes

Number of Park-owned Homes: 19
Average Rent for Park-owned Homes: $640

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