We are selling one of our MHP’s in Southeast Michigan because we have a few bigger MHPs under contract that we’d like to move on.
This MHP has 29 lots; 28 lots and 1 stick built home.
The park currently has 15 tenants; 14 tenant-owned mobile homes + 1 tenant in the stick built home. No POH.
The park has a new onsite manager who is supervised by a professional management company.
It’s a nice park; it sits on 27 acres of land; only 5 acres are currently used thus ++ potential to develop. It’s situated in a nice college town. Closest Walmart is 7 miles away. Tractor, back blade, salamander and pole barn INCLUDED
The property has water well and septic. Well is only approx. 3 years old. Both water pumps (primary and secondary) and 3 bladder tanks were changed in 2017. Septic tank was emptied and inspected less than a year ago -it’s in good condition. The park has been well maintained. The water lines will eventually need to be changed but could be done slowly.
Asking price: $255,000.00
Gross income: $4000/month or $48,000.00/year
Annual taxes: $2485.67
Power Bill (for water pumps and park lights): $6,000 ($500/month)
Trash Removal: $2,700 ($225/month)
Property management (8% of collected rents): $3,840 for off-site professional management (in place);Onsite manager currently in place who lives lot free
NOI: approx. $30,000.00
CAP RATE: 12% AS-IS
Proforma gross annual income: $114,420.00
PROFORMA NET OPERATING INCOME (NOI): $85,000 (approx.)
Proforma Value: $944,444.00 (calculated at a 9% CAP)
This park has tremendous upside value. Manager gets phone calls from people wanting to move into the park often but we have not had time to bring in new mobile homes. Lot rent is between $275-325/month (still slightly under market rent); but a 2 bedroom in town is approx. $800.00/month. People have expressed the need for affordable housing. You shouldn’t have a problem finding tenants if you bring more homes.
The price is negotiable. We are ready to move. Make us an offer!
Owner financing possible.
DO NOT VISIT THE PARK WITHOUT AUTHORIZATION! THIS IS AN OFF-MARKET DEAL.
If you want more information, we have an executive summary prepared with some pictures and due diligence items. Feel free to email us at: email@example.com