Mobile Home Community

[Emily Fackler]

Investment Info:

Other commercial investment investment.

Purchase price: $130,000
Cash invested: $13,000

The property has 6 acres with 39 available lots to rent currently and an addition 10 lots that can be rented once the city builds a service road to the back of the property. We do not own an of the mobile homes.

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

Bigger Pockets Podcast!

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

I found the deal by asking my best friend's mom, "who owns the trailer park in town?" The answer to the question was a name of a friend of our family. I reached out to him and asked him if he was interested in selling the property and he said, "YES." He gave us a price and because I knew it was a good deal, we accepted the selling price.

How did you finance this deal?

We partnered on the deal with our best friends. We both paid half of the down payment with cash and financed the rest with a commercial loan for 12 years.

How did you add value to the deal?

We have increased the rent lot for existing tenants as well as for new tenants. We have also rented out additional lots by marketing, appearing in google search, as well as putting up a Community sign at the front of the park. We also plan to open up 10 more income producing available lots within the next year.

What was the outcome?

In only 6 months we increased the monthly income by 33%. We are also putting money into the plumbing and landscape on the property that will allow us to slowly increase rent over the next few years to market value in our area.

Lessons learned? Challenges?

Relationships are key and be fair and firm with your tenants.

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

Yes, we worked with Famers Bank of Eddyville Kentucky on our loan and highly recommend them.