I’ve been working on an older park in a metro area that I purchased for almost two years. We bought this park as it was cheap, all city services, low occupancy but had homes to rehab and terribly managed. It had a negative NOI when purchased of $1200/mo, now we’re positive $6900/month. The park has 7 units remaining to be renovated of the 38 homes there. There’s also a restaurant that has had a strong tenant in it for a year now, $1000/mo NN. I also have another 17 homes in inventory to be relocated to this park eventually. We’re rehabbing/selling one to two homes per month and we have a waiting list right now as the market is strong and getting stronger as our occupancy increases. Lot rent is $270 but we just increased it to $300/month with no resistance.
I’d like to get financing on this park to buy another one as I feel comfortable with the model and there are opportunities to purchase. Realistically we could double our NOI but it will take up to two years to do this. It’s a good park now but should be a great park. I’m keeping expenses low and rehabbing at a reasonable pace to meet demand.
I’d like to get a 50% to 60% loan based on current NOI and in two years/when fully occupied, increase the loan, same LTV but with higher NOI.
Does anyone know of a lender that will do this loan?