Hope Village Mobile Home Park in Carthage, TX is for sale. Seller financing available (pending approval) with 25% down, and $3,000 a month payments.

The park is privately owned and was a very good investment. We purchased the park in 2004. We owner financed the park in 2010. The park averaged 90% occupancy and $10,000 in monthly rental income from 2006 to 2012. In 2012 the park appraised at $675,000 (appraisal available upon request).

In 2013, the owner experienced some personal difficulties that no longer allowed him to manage the park. As a result, we repossessed the park in 2015. Other business interests have not allowed us to give the property the attention and management it needs to thrive as it did just a few years ago. We have renters actively calling, but do not have time or staff to make units ready.

Hope Village has 48 sites on 10+/- acres. 36 spaces have water, sewer, electric and cable ready for hook up. 12 spaces have electric and cable and will need to have sewer and water added before use. All spaces are on city utilities and paid by the residents. There are 25 park owned homes and 2 lots rented to individuals in their own homes. Monthly rent potential is $11,840 at current rental rates, without considering the 21 lots that do not currently have mobile homes on them. Rents have not been raised in 7 years. The true potential for this park is much more than $11,840 per month.

In 2012, the park appraised at $675,000. The appraisal was based on 23 park owned homes (1 was not habitable and later removed), 3 tenant owned homes renting lots, just under 15 acres, and a total of only 27 pad sites. Monthly income averaged at $10,000.

Today the park has 10+/- acres and 48 lots, 36 of which are completely ready for a mobile home and 27 of those lots have homes on them currently. Since 2012, 3 older park owned homes have been removed and 5 updated park owned homes have been added to bring the current inventory to 25 park owned homes. 2 tenant owned homes bring in lot rent. 11 lots with full utility hook ups are waiting for homes to be moved in, while an additional 12 pad sites will require a street addition and the water and sewer main to be extended if used.

Current income is $3,435 with 7 of the park owned homes rented. If an investor acquired traditional financing on a 20 year note, with 20% down, at a 5.25% interest rate, the monthly payment would be $2,358, assuming good credit. The park would be in a positive cash flow position with no changes.

Most of the additional 18 park owned homes will require $2k - $3k per house to bring them to rentable condition, although some will require less for sure. A few may require as much as $5k, with most of the cost going to A/C and/or heat, but that would be an absolute worst case scenario. Using the numbers from the two past appraisals, the park would appraise somewhere around $750,000 once the park owned homes have been made ready and rented.

Investors look at things differently, but our perspective is that since the park is already in a positive cash flow position, the investor would essentially be getting 18 mobile homes and 11 lots for free. Those homes and lots would require minimum, or no investment, to produce additional income. Assuming an unrealistic extreme worst case scenario of investing $5,000 per remaining home to make them ready, the investor would be spending $90,000 to increase the value of the property by $400,000 and increase monthly income to an existing potential of above $14,000 (park owned homes & empty lots), not considering the additional 12 lots that will require an infrastructure investment.