Contract for assignment for a cash-cow opportunity southern Ohio! This deal has a shorter fuse (hence the attractive walk-in cap rate).
Here are the basics of the park:
- 70 lots
- 32 occupied (39 vacant) - includes 3 POHs which are not included in the purchase price (new owner has option to purchase POHs at $3,000 / home)
- Lot Rent: $275 / month
- City water, city sewer - directly billed to tenants
- Owned by second generation family member, been in the family for 50 years. Because of old age and bad health, owners have not professionally managed the park.
- Purchase Price: $585,000
At the current occupancy and using a conservative 40% expense ratio, new owner is walking into a 11% cap rate on the lot rent only. By bringing occupancy to 80%, new owner will increase the value to over $1 million!
To further increase the value of the park, new owner will need to work on the following:
- Fixing open sewer lateral lines (approximate budget: $40,000)
- Pave the potholes in the asphalt streets (approximate budget: $10,000)
- Filling vacant lots
If interested and able to proceed quickly, please reach out at the phone number below.
Eric
(585) 653-7170