Mobile Home Park Expansion 15 to 33 units

[Logan M.]

Investment Info:

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

Purchase price: $230,000
Cash invested: $60,000

The purchase of a property for $230,000, and our strategy for this venture is a "buy and hold" approach, focusing on long-term profitability and growth.

Property Details:

Originally, the property consisted of 15 units, with four vacancies. However, we were able to expand the property by acquiring the neighboring home, resulting in a total of 33 units. This expansion not only increased the number of rental units available but also enhanced the overall value and potential of the property.

Future Value Appraisal:

In 2020, a comprehensive future value appraisal estimated the property to be worth an impressive $1.8 million. This valuation indicates the potential for substantial appreciation in value over time.

Investment Strategy:

Our strategy is to hold onto the property for an extended period, allowing us to benefit from rental income, capital appreciation, and potential tax advantages associated with long-term investments. By adopting a patient approach, we can leverage the property's growth potential and maximize our returns. To acquire additional communities.

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

The cash flow based upon a 230k purchase price.

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

It was on the MLS, I was the fourth buyer to put it under contract.

How did you finance this deal?

Local Credit Union

How did you add value to the deal?

Expansion from 15 spaces to 33 spaces.

What was the outcome?

Still in progress but we are bringing in new homes to fill the vacant pads.

Lessons learned? Challenges?

Make sure your numbers are foolproof on the construction loan.

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

I represented myself as a buyer's agent. I am an expert in negotiating investment deals.