Mobile Home Park - Chinquapin, NC

[Jonathan Formyduval]

Investment Info:

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

Purchase price: $200,000
Cash invested: $80,000

6 units on grandfathered MHP (8 acres)

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:
- $200k purchase price
- $80k down payment
- 4 year amortization
- 3.85% APR

How did you finance this deal?

Seller Financing

How did you add value to the deal?

- Surveying land to break into 3 lots (allows me to add two units per lot while keeping current MHP on the grandfathered land)
- Adding four units and four septic tanks
- Future plans to raise rent by $50 per unit

Lessons learned? Challenges?

- Would have inspected all HVAC units and used failing HVAC systems as negotiation point (one HVAC units failed shortly after purchase).

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

No