Mobile Home Park - Jacksonville, NC

[Jonathan Formyduval]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Jacksonville.

Purchase price: $850,000
Cash invested: $125,000

13 pads, 11 park owned homes, asphalt driveway/parking pads, city water, individual septics

What made you interested in investing in this type of deal?

High low income housing needs in area, low barrier to entry, low cost maintenance/renovations

How did you find this deal and how did you negotiate it?

Found through local contacts
Negotiated a seller financed deal with below terms:
- $850k purchase price
- $125k down payment
- 15 year amortization
- 3.35% APR

How did you finance this deal?

Seller financing

How did you add value to the deal?

- Initially removed problem tenants, renovated four units, and raised rent.
- Future plans to add one unit and raise rent on former property manager by $450 per month.

Lessons learned? Challenges?

- Initial capital infusion was too low and ideally I would have budgeted for more startup expenses; this is mainly due to the four renovations and HVAC issues.
- Would have inspected all HVAC units and used failing HVAC systems as negotiation point (two HVAC units failed within one month after purchase).

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No