11-Unit MHP in Crestview!!! Available

There are very few opportunities to own a mobile home park in the rapidly developing city of Crestview, but here is your chance to own a 11-space park with huge value-add potential.

The park is comprised of 11-lots, 10 Park Owned Homes (POH), 9-units are tenant occupied, and 1 vacant home that is currently being used as storage.  The 11th space is cleared and ready for a new home or RV to be placed, but you will need to set up the power pole and connect to water/sewer.  Homes consist of older 60’s and 70’s models which have been updated over the years by the owners.  Tenants are responsible for their own yard maintenance, but property management, common area landscaping, and maintenance/repairs to homes are completed by the current owners.

The units are direct-billed for electric, and the park is on city water and city sewer. Trash and water/sewer costs are paid by the owners.  This is your FIRST value-add opportunity (approximately $500/mo):  Bill-back trash, water, and sewer costs to tenants

The average rent for all 9-units is $525/mo (varies between $425 and $575/mo), for a $4,725 gross rent per month, or $56,700 annually.  With market rents for 2 and 3 bedroom homes in the area between $950 to $1,050, this is your SECOND value-add opportunity:  Increase rents immediately!  Increasing POH rents to $750-$800/mo will increase your annual revenue by $24,300 to $29,700. 

We ran a test add for $800/mo and had 45 inquires about avalabilities within 2 hours of listing it.  This market is HOT and inventory is extremely low.

While higher gross rents for POHs are very easy to achieve, our normal strategy we employ when we close on a MHP is to do rent-to-own or cash sales of the individual homes to the tenants we qualify to reside in our communities, and then just charge lot rent ($400/mo in Crestview is market rate).  While this does lower the gross income, it exponentially reduces the maintenance and repairs, as the tenants are now responsible for their own homes.  We typically see a 20%-25% decrease in our expense ratio when we have a 100% tenant owned home (TOH) park vs. a 100% POH park.  This is your THIRD value-add opportunity:  Sell homes to tneants and convert to 100% LRO (lot rent only) park and exponentially decrease your expenses.

Your FOURTH value-add opportunity will take a bit more time and planning:  Convert the park to a MH/RV park.

This will allow you to add RVs into the park, but you will be required to rezone the park to allow for this, and get approval from the state to increase the number of homes you are allowed to operate on your license.  This may sound daunting, but it is easier than it sounds.  We would recommend factoring this in as a “nice to have” but not as a guaranteed option, as it requires county and state approval prior to execution.  However, it can drastically increase both your cash flow AND your valuation, and it can do it very quickly!

This has obviously been a longer write up than you are used to for our deals, but we wanted to give you the details as we know them, and provide a bit of guidance as to how to maximize the performance of your asset.  We are also MH/RV park operators, and we would be happy to assist you with knocking this one out of the park!

We have all of the leases and mobile home titles available for your review upon request.  Give us a call today and we can discuss the property with you.

Property Appraiser

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Property is OCCUPIED.  DO NOT DISTURB TENANTS.