Value Add Upstate NY
buy & hold investment in Oneonta.
Purchase price: $1,000,000
Cash invested: $200,000
A 40 Unit Senior Retirement Modular Home Complex that we're expanding into 100+ units.
What made you interested in investing in this type of deal?
Mobile Home Parks/ Senior Retirement Communities/ Modular Housing Communities are an extremely attractive investment opportunity. Especially in a market where it's so hard to find a deal.
How did you find this deal and how did you negotiate it?
We found the deal through our sourcing team- They Negotiated by offering at a 12 cap-
How did you finance this deal?
Private Equity Investors + Bank Financing
How did you add value to the deal?
We're going to be expanding from 40 to a minimum of 119(We think potentially 160)
What was the outcome?
The expansion is not done yet! It's a longer term expansion plan
Lessons learned? Challenges?
Due Diligence Documents shed light on things that owners (intentionally or unintentionally) try to hide - we found out the rent for the lot was a whopping $70 lower than we initially thought. Which is a big deal considering that we're talking about $33,600 of missed income a year. When you have a property that only cash flows so much, that has an impact on your return!