Statesboro Mobile Home Park - 103 lots

[Nolan Andrews]

Investment Info:

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

Purchase price: $3,250,000
Cash invested: $1,400,000

Purchased a 103 unit mobile home park off-market at 55% occupancy at a 9.5% cap. Expanded operations and currently infilling and renovating park owned homes. This is a value-add, long-term hold designed to stabilize in 1-2 years.

Cash flow at entry: $30,000/month
Cash flow after stabilization: > $60,000/month

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

Previous mobile home park investment peaked my interest and projected housing demand growth in the area is significant while future housing supply is not going to fill the demand.

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

Off-market and after an on-site visit I immediately offered asking price, which the seller thought was unlikely.

How did you finance this deal?

Partnership with desirable private money from members.

How did you add value to the deal?

Improved operations and overhauled management. Currently improving infrastructure to move the park from 55%->95% occupancy.

What was the outcome?

tbd

Lessons learned? Challenges?

One of the lessons learned was that I could not change "park stigma" just by adding a new sign. I also underestimated the tenants we would lose not to non-payment but for violations and non-conforming behaviors and resistance to new rules.