Mobile Home Park Details

Purchase Method: Cash, New Loan
Listing ID: 1420617
Posted On: Apr 9, 2021
Updated On: May 28, 2021

Description

Spencer Square MHP is a quaint little community in Spencer, IN. The park is comprised of twelve pads and one single family residence. The total size of the park is just under one acre. The park is zoning compliant and is not located within a flood zone. The park is currently managed by an out-of-state investor, but he believes there are a couple of tenants who might make a capable manager/greeter for the next ownership group if desired. All of the pads are currently occupied with trailers. Ten out of the twelve trailers are being sold on RTO contracts, two of the trailers are vacant and ready for rehab, and the single family residence is also rented. Two POH's are vacant and are ready to be renovated. The last pad rental increase was in March of 2020. The current pad rental rate is $400/pad. The park also charges $75/month for water & sewer. Tenants pay for their own electric, gas, & garbage removal. Each tenant has signed a monthly lease for the lot rent, in addition to the RTO contract. All of the tenants are current on their rent. The current value of the RTO contracts is approximately $123,500.

City water & city sewer!!! No roads to maintain!!! Not only do we have a park that is bringing in a large amount of cashflow, you also have a park on city utilities! The park is surrounded by city roads so the city maintains the roads around the perimeter. This is an extremely low cost, low maintenance park. The underground pipes in the park are comprised of steel and upgraded PVC. Each of the electrical pedestals have 200 amp service. The electric and gas are direct billed to the tenant from the service provider. The tenants are responsible for mowing their own space. There is no expense for snow removal as the streets are plowed by the city.

The current ownership group has completely turned this little park around. They completed major renovations on nine of the trailers in the park and then sold them on RTO contracts. The previous ownership group upgraded the water system as they were excavators by trade. When asked what improvements they would continue to make if they were to own the park going forward:

1. Rehab the remaining two POH and sell them on RTO contracts.
2. Add a sign for the community

This is a great park for a smaller or beginner investor. It checks all of the boxes.

Location

Spencer is a town in Washington Township, Owen County, in the state of Indiana. The population was 2,217 at the 2010 census. It is the county seat of Owen County. Spencer, IN is 50 miles south of the Indianapolis International Airport, 17 miles from Bloomington, IN, and 120 miles from Louisville, KY. Spencer is part of the Bloomington, Indiana Metropolitan Statistical Area.

Bloomington is a city in and the county seat of Monroe County in the central region of the U.S. state of Indiana. It is the seventh largest city in Indiana and the fourth-largest outside the Indianapolis metropolitan area. The population was 80,405 at the 2010 census. The city's population was estimated at 85,755 as of July 2019 by the U.S. Census Bureau. Bloomington is the home to Indiana University Bloomington. Established in 1820, IU Bloomington has 49,695 students, as of September 2016, and is the original and largest campus of Indiana University. The University of Indiana used to have a good basketball program under the direction of Bobby Knight, who led the Hoosiers to three national titles. In the 2020-2021 season the Hoosiers lost three times to Rutgers.

In addition to the University of Indiana, there are a large number of manufacturing and processing firms located in Monroe County.
-Indiana University (7,000)
-Cook Group, Inc. (3,300)
-Indiana University Health (2,246)
-Baxter Pharmaceuticals (1,100)
-City of Bloomington (690)
-General Electric (650)

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