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Mobile Home Park Details

  • Price: $500,000
  • Cap Rate: 8.0%
  • Property ID: 993007
  • Posted on Sep 26, 2018

Property Description

The MHP Broker announces the sale of Harmony Meadows MHP. This is a Well-located, stabilized MHP with plenty of up-side in strong market. The park has 17 lots, with 2 lot-rent-only tenants each paying $285. There are 2 vacant lots and current occupancy is roughly 83%. Harmony MHP has city water that is directly billed to the tenant. There are 13 park-owned homes (POH) that are in good condition of mostly mid-1990's models. Each lot has its own septic and the tenants are responsible for clogs. The tenant-owned units are in good shape with majority of them being 1980’s and 1990's models. The privately maintained roads are gravel and in good condition, as our offering price suggests. The park is NOT in a flood zone. Harmony MHP is a subdivision that has 23 separate parcels 5 undeveloped lots. One lot is owned by a separate owner, and is not included in the sale. This community is positioned in a excellent location near all amenities close to downtown Harmony and 55 minutes from downtown Char-lotte. This community is being offered as a stabilized investment with a 7.50% CAP on current lot-rent only, using a 33.5% expense ratio, plus consideration for the park-owned homes. There is an additional $42,900 of POH rental income that is not included in the CAP rate. All the POH is on a rent-to-own (RTO) contract and there is no POH maintenance responsibility for the owner. We are asking investors for shell-value only on the 13 POH of $9,900 each, which is below replacement cost. We are looking for cash offers, however, recourse bank debt should be available for this deal. At full price, using bank debt (5.5% interest, 20 YR AM, 30% down), the overall Cash-On-Cash Return for the park is 19.4%+. The price per lot is about $32,353 each and includes full infrastructure for each lot. We are asking our investors to submit offers at or above $550,000 for the entire park including POH. The potential of this park, using an 95% occupancy and only calculating the $325 Lot Rent Value and equal consideration for the POH, is $675,000.

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Park Information

Community Type: All Age
Number of MH Lots: 17
Total Occupancy: 83.0 %
Average MH Lot Rent: $253
Size: 15.9 acre(s)

Financial Information

Gross Income $48
Operating Expense $12
Net Operating Income $36
Expense Ratio 25.0 %
Debt Info

Utility Information

Water: City
Water Paid By: Tenant - Submetered
Sewer: Septic

Park-Owned Homes

Number of Park-owned Homes: 13

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