MHP For Sale in Central Iowa

mobile home university
1

Testing the waters on selling my MHP now (without a broker) rather than waiting to infill the last two lots. Here are the details:

  • Boone, Iowa metro area, about 30 minutes from the Des Moines metro area
  • 22 lots
  • 20 occupied (a few of them are in the middle of the sales process, but will be occupied by the time we would sell the park)
  • All tenant owned
  • $375 monthly lot rent (well below market rent)
  • Roads are owned, maintained, and plowed by the city!
  • Public electric and gas directly billed to the residents
  • Public water and sewer, billed back to the residents ($1,100 average master bill, about 80% recovered)
  • We currently pay for the individual trash bins at $15 / bin / month; could easily be billed back
  • Mostly modern single-wides with shingled, pitched roofs and vinyl siding
  • Price that would get me to sell it now: $708,000
  • I am not entertaining “low ball” offers right now (Plan A is to infill the last two homes and list with a broker).

Let me know if you are interested.

Thanks!

Mark
markadamtanner@gmail.com

2

What is market rate in your area? Why not be the bad guy and actually raise to market to sell and I will offer you $750.000 now! Really tired of people selling property being below market rate that there is some magic for a new owner using proforma to raise rates and then have +2 new vacancy. Why would you leave money on the table—raise to market rates and then sell??? We have cash!!!

3

@carl My rates are below market and I have been raising yearly to try to bring it up to market. I spoke with a broker regarding selling my park and they said not to raise this year so a buyer feels there’s an upside. I was told a stabilized park isn’t as attractive to buyers. Personally… a finished park sounds better to me because someone else did the heavy lifting for me… but what do I know?

4

Hi Carl, good question. It’s the MHC in the town, but rents are over $500 in Boone, 10 minutes away, so at least $450, probably close to $500. I guess I don’t want to be the “bad guy”. The new buyer can do that. :slight_smile: How much would you pay for it at current rents?

5

PS: You can contact me through email or phone markadamtanner@gmail.com 860-422-3819

6

I can see it both ways, but I’ve just been raising rents slowly because it’s more digestible for the residents.

7

Most mobile home park buyers in today’s market tend to target communities with around 40 pads and up, especially institutional and larger private equity groups. That said, there’s still demand for smaller parks that are well-run and priced right.

A park with strong occupancy, tenant-owned homes, public utilities, and city-maintained roads is a combination that isn’t easy to find, and those public infrastructure benefits help your expenses stay lean, which buyers love.

That said, the best way to get top dollar is always to maximize NOI. Since rent is currently below market, there could be an opportunity to raise income before selling, or at least highlight that upside clearly in the marketing package. Similarly, recovering trash costs or adjusting RUBS on water/sewer could add meaningful value—every $100/month in net revenue increase equals about $15,000 in added value at an 8 cap.

If you’d like, we can hop on a quick call to talk strategy.