I’m under contract on a park in Alabama with over 210 pads that has huge potential, but requires more capital than I currently have, so I wanted to post it here to gauge interest in assigning the contract.
90% of due diligence is completed, and I’m an open book and will share all of my notes with anyone interested. Seller-financing is already negotiated on great terms. Park is distressed, this is a huge value-add play that requires someone with significant capital, probably around $500k or so. Details are below:
- 210+ lots
- 37 lots occupied - a combination of TOH’s and POH’s
- About 50-60 abandoned mobile homes, maybe more. About half can be renovated, half to be removed and demolished.
- Lot rent = $165 - $185 (market would support $200, although would be on the higher side)
- Home rentals = $385 - $450 (the $385 ones can go higher)
- Seller claims NOI was $4,400 per year, but through our DD we calculated it is realistically zero or even losing some monthly. This can easily be changed by taking the $3,500 monthly water bill and billing back to tenants day 1, and fixing several suspected water leaks
- Area is BEAUTIFUL, I just drove the city and almost all buildings were built in the last 10 years. Neighborhood across the street is homes all less than 10 years old, one is one of the 3,500sq. ft. new construction McMansions. It’s this nice because the park is right on the Tennessee River. Test ad ran huge demand.
- 2 Miles from Walmart Supercenter
I’ve been under contract with this property for a while now, but I think it’s too much for me to undertake and takes a lot more capital than I have, and I’m also looking for more of a cash-flowing property than a value-add one. Once the roads are fixed, the abandoned homes removed, the water leaks fixed, the pool filled in, and a few other projects are completed, this park has HUGE potential. If someone filled the park with all POH’s and rented them at $500 a pop, the park could generate over $1.3MM per year in gross. I’m willing to take my finders fee (included in the $500k price) and assign this contract over to someone else with more capital for the CAPEX projects and more experience in this field. Also, the property is confirmed to be able to be insured. This property is the “ugly duckling” in a really, really nice neighborhood in an excellent community, but it’s a real project.
I’ve done a ton of DD on this park so far so I’m fairly familiar with it. Send me a message or reply to this for any more info on the park - I’m an open book and will share ALL of my notes, tell you everything I’ve uncovered, share all of my pictures, etc.