MHP in Billings Montana

[Michael Jester]

Investment Info:

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

Purchase price: $1,100,000
Cash invested: $400,000

The subject property is a 22 space professionally managed manufactured home community, comprised of 18 single wide spaces, 2 double wide spaces, and a duplex comprised of two 500 square foot one bedroom units. The duplex is just 50 feet north of the 8 mobile homes in the center of the property, and 120 feet west of the 4 mobile homes that border Florine Lane. Tenants are on city water and sewer.

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

Client was looking for a 1031 transfer of 2 duplexes to increase monthly net. This fit the deal with the net goal being achieved.

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

Deal was found through an agent connection with another brokerage. The LA shared it in an email once the listing was signed by the seller. Negotiations were a bit tough as mobile homes don't appraise as real estate and the business of 22 units was what was driving price. It was tricky to say the least.

How did you finance this deal?

Deal was financed through a local bank in Montana.

How did you add value to the deal?

We saw the potential to raise the livability and the income while also lowering operating costs. We will be a partner in this project for a while, that's for sure.

What was the outcome?

Undetermined as we are waiting to close at this time.

Lessons learned? Challenges?

The challenge was getting the deal to pass appraisal.

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

I for sure will recommend Damian Forrester with eXp Realty in Billings, MT. Stellar guy, and was all in on the negotiations. His expertise and wisdom really helped get this deal to closing.