Updated almost 4 years ago on . Most recent reply
2 distressed Mobile home parks
Investment Info:
Other fix & flip investment in Greenbush.
Purchase price: $600,000
Sale price: $2,500,000
2 mobile home parks consisting of 66 lots, poorly managed and distressed. We used equity lines for down payment. We have contributed a few hundred thousand to rehab so far including the 19 homes. Most has come from cash flow. In one year we cleared out 6 junk homes, rebuilt 19 pads and filled with homes. Paved the road in one park. All non paying tenants have been evicted. Revenues have nearly doubled. We expect revenues to increase another $18000 per month in 2022. Hopefully by year end they will be stabilized and ready for sale.
What made you interested in investing in this type of deal?
I’ve owned several and better return than SFHs
How did you find this deal and how did you negotiate it?
From lot for rent sign, talked with owner.
How did you finance this deal?
Commercial loan and equity lines.
How did you add value to the deal?
Cleaned up park, raised lot rents, filled empty lots, paved driveway, improved infrastructure.
What was the outcome?
Still in progress, better tenant class, doubled income so far. Hasn’t sold yet but form made me put in a sale price. Based on 9-10 cap, should be approximately the value when completed.
Lessons learned? Challenges?
Finding enough homes and getting labor to rehab them
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
First National Bank
