Help with analyzing a Mobile Home Park Deal

[Niraj S.]

Hello Bigger Pockets Family!

I need help determining if this mobile home park is a good deal or not. Basically i haven't had much experience in them so need some BP expertise in analyzing this. Thanks so much in advance!

INVESTMENT HIGHLIGHTS

• Water System included

• 95-100% occupancy with long term tenants

EXECUTIVE SUMMARY

Mobile Home Park & community is a small park investor's dream! 20 good-looking and well-kept units on 1 acre + parcels with control of a private community h2o system! Quiet country setting w/ SW & DW units throughout this well designed community with nice paved roads. Mostly long-term and likely life-long tenants here, each MH permanently attached to real estate w/ central HVAC, & many with recent new roofs. Currently at 100% occupancy with gross income of $11,960/mo ($10,915 rent + $1,045 over 19 additional h2o accounts). 10.10% cap rate at the proforma $100,464 NOI with 30% OPEX factor. PGI and cap could easily be raised by charging current 20 tenants $55/mo h2o fee. Purchase alone or w/ sister property located only 7 miles away! 

PROPERTY FACTS

INVESTMENT HIGHLIGHTS

• Water System included

• 95-100% occupancy with long term tenants

EXECUTIVE SUMMARY

Chaserville Mobile Home Park & community is a small park investor's dream! 20 good-looking and well-kept units on 1 acre + parcels with control of a private community h2o system! NE Cook County is south Georgia living at it's finest and Chaserville shows it!. Quiet country setting w/ SW & DW units throughout this well designed community with nice paved roads. Mostly long-term and likely life-long tenants here, each MH permanently attached to real estate w/ central HVAC, & many with recent new roofs. Currently at 100% occupancy with gross income of $11,960/mo ($10,915 rent + $1,045 over 19 additional h2o accounts). 10.10% cap rate at the proforma $100,464 NOI with 30% OPEX factor. PGI and cap could easily be raised by charging current 20 tenants $55/mo h2o fee. Purchase alone or w/ sister property - Fox Run MHP located only 7 miles away! See Loopnet "1000 Pleasantdale Circle, Sparks" & "Portfolio of 18 Assests For Sale Adel Portfolio" to follow or contact L.A. for details. Aerials and more exterior pictures to follow.

PROPERTY FACTS

Price	$995,000	Lot Size	20.00 AC
Sale Type	Investment	Building Size	40,000 SF
Cap Rate	10.10%	Average Occupancy	95%
Property Type	Multifamily	No. Stories	1
Property Subtype	Manufactured Housing/Mobile Home	Year Built	1980
Apartment Style	Garden	Opportunity Zone	No
Building Class	C

INVESTMENT HIGHLIGHTS

• Water System included

• 95-100% occupancy with long term tenants

EXECUTIVE SUMMARY

Chaserville Mobile Home Park & community is a small park investor's dream! 20 good-looking and well-kept units on 1 acre + parcels with control of a private community h2o system! NE Cook County is south Georgia living at it's finest and Chaserville shows it!. Quiet country setting w/ SW & DW units throughout this well designed community with nice paved roads. Mostly long-term and likely life-long tenants here, each MH permanently attached to real estate w/ central HVAC, & many with recent new roofs. Currently at 100% occupancy with gross income of $11,960/mo ($10,915 rent + $1,045 over 19 additional h2o accounts). 10.10% cap rate at the proforma $100,464 NOI with 30% OPEX factor. PGI and cap could easily be raised by charging current 20 tenants $55/mo h2o fee. Purchase alone or w/ sister property - Fox Run MHP located only 7 miles away! See Loopnet "1000 Pleasantdale Circle, Sparks" & "Portfolio of 18 Assests For Sale Adel Portfolio" to follow or contact L.A. for details. Aerials and more exterior pictures to follow.

PROPERTY FACTS

Price	$995,000	Lot Size	20.00 AC
Sale Type	Investment	Building Size	40,000 SF
Cap Rate	10.10%	Average Occupancy	95%
Property Type	Multifamily	No. Stories	1
Property Subtype	Manufactured Housing/Mobile Home	Year Built	1980
Apartment Style	Garden	Opportunity Zone	No
Building Class	C

Price	$995,000	Lot Size	20.00 AC
Sale Type	Investment	Building Size	40,000 SF
Cap Rate	10.10%	Average Occupancy	95%
Property Type	Multifamily	No. Stories	1
Property Subtype	Manufactured Housing/Mobile Home	Year Built	1980
Apartment Style	Garden	Opportunity Zone	No
Building Class	C

VALUATION
Total Monthly Rent $10,915
Total Monthly Water Charge $1,045 *39 Total Units on water system / only 19 non park owned homes are charged per month
Annual Gross Rent $143,520
30% operating exp -$43,056
Net Operating Income $100,464
List Price $995,000
10% cap rate $1,004,640
11% cap rate $913,309
12% cap rate $837,200
Cap Rate at asking price of $795,000 10.10%
List Price of $995,000 for 20 mobile homes (19 currently rented) AND 19 additional water system customers
*$995,000 is a ±10.10% cap rate at the proforma $100,464 NOI with 30% operating expense factor arrived at by combination of looking at recent comparable sales, cap rate analysis, and market experience.