RV park on the ocean front.

[Adam Day]

Investment Info:

Mobile home buy & hold investment in Petersburg.

Purchase price: $160,000
Cash invested: $30,000

Industrial lot, on the ocean. Grandfathered in as a RV Park. 11 spaces set up for long term Tennant's leasing the space. Purchase my own RV's to rent and sell to Tennant's to fill park.

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

Was just looking for my first deal, this popped up on the MLS penciled it out and jumped on it. Every deal analyzed thus far doesnt even compare when analyzing return.

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

Came up on the MLS. Price was based on land value not income stream. Four spaces rented with long term Tennant's. New with the four Tennant's and raising rents 25$ it would pay for itself with lots of room to grow which it has.

How did you finance this deal?

Conventional

How did you add value to the deal?

Miss-managed park. No lease agreements. Renamed, setup lease agreements, raised rents, bought trailers set them up and leased to own to get Tennant's into the park.

What was the outcome?

Doing very well, expenses very low, paying property taxes, water and sewer. No maintenance-very low maintenance. Very passive.

Lessons learned? Challenges?

Setting up leases was challenging, training tennats to pay on time took some time.

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

One agent, really the only one out of the two in town I would work with.