I’ve got this 19- space park in upstate NY for assignment.
Total purchase cost, including assignment fee = $233,000. I figure with minimal rent raises, filling 9 sites and billing back water/sewer/trash, the park will be worth $600,000 at an 8.5 CAP!
Here are the CURRENT numbers:
- 10 occupied tenant-owned homes (TOH) @ $275/mo.
- with an expense ratio of 40%, the NOI is $19,800
- $19,800 / $233,000 = 8.5 CAP.
Here are the PROJECTED numbers:
- 19 tenant-owned homes @ $300/mo.
- with an expense ratio of 30%, the NOI is $47,880
- $47,880 at an 8.5 CAP is $598,000
This park has 19 lots. There are 10 TOH’s, 2 vacant park-owned homes that need about $5k in rehab, and 7 vacant lots. The average lot rent is $275/mo. and the market rent is $300+/mo.
The park is on public water/sewer and the park pays. Park also pays for trash. The homes are older and most need paint. The roads are gravel, with some pot holes. The park infrastructure seems in decent shape.
The park is only a couple of blocks from a boat dock on a lake, which lends itself to potential RV lot rent. A nearby park charges $420/mo. for RV lot rent. The park is in a decent neighborhood of a small town and is only 6 miles from two colleges.
The park is in the Ogdensburg-Massena MSA, which has the following stats:
- population = 107,000
- median home cost = $90,000
- median apartment rents: 3BR = $1047/mo.; 2BR = $827/mo.
- vacancy = 21% (but 13% is vacation home vacancy).
If you are interested in this deal, let me know. Easiest for me is to email: gordoncgraham@gmail.com, OR call 617-312-9833 (C).
Happy Holidays!!