30unit Mobile home Park (and small multi unit apt) purchase

[Lee Gilroy]

Investment Info:

Mobile home other investment.

Multi unit complex, RV/Trailers and mobile home Park

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

I was always interested in this asset class. I wanted to use our experience in real estate to turn this property around, modernize it. use technology to manage it and provide a nice living community to existing and new tenants.
The Tax benefits were definitely a consideration in purchasing this property, but it is mostly a test run before buying much larger MH Park.

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

We found it on loopnet, after it fell out of escrow. We did some serious DD and negotiated a pretty decent purchase price/cap rate.

How did you finance this deal?

We tried to get seller financing, but seller did not want to do so and we ended up paying cash.

How did you add value to the deal?

The Park was pretty neglected. We trimmed and cleaned up all the trees, added light for safety and esthetic purpose, remodel the empty units inside and out, added security cameras, new laundry room and equipment, new fences, new signage, online marketing, increased rents (that were way below market) and added new tenants.

What was the outcome?

Still in progress, but going very well and cash flowing.

Lessons learned? Challenges?

Refi cahs out that makes sense is challenging at this time.