Mobile Home Park Details

  • Purchase Method: Cash, New Loan
  • Cap Rate: 7.8%
  • Listing ID: 3251739
  • Posted On: Jun 28, 2023
  • Updated On: Oct 25, 2023

Description

There are 27 mobile homes. Titles are in hand for 26 and one is in the final stages of being acquired. All homes are owned by the owner of the mobile home park. There is also one available pad with septic infrastructure already approved by the county health department and the electric department has already been paid for the engineering survey to add power. Further, a soils engineer surveyed the property and another six septic tanks can be added for additional homes. Survey map is available.

Rent continues to accelerate and is now averaging over $705.00 per home. Pet rent and pet fees are collected as well as Security fees and if necessary due to poor credit rating, Rent Security fees. All of these are up-front fees with pet rent on-going monthly. The owner can explain the Rent Security fee program to the potential buyer.

All homes are listed with E911 and have individual power and water metered by the respective utility suppliers. Two homes are being fully renovated and should be finished within the next three months; however, the park can be purchased without these two homes being completed. Another home can be moved in on the available pad. Total homes then would be 28 mobile homes and one house (needs some work but livable and has tenants). Soil survey has been completed by a Soils Engineer and an additional six septic tanks can be added for expansion.

Location

Vales Mill Mobile Home Park is located approximately 40 minutes from Huntsville, Alabama (Home of America's Rocket Program) and within an hour of Nashville, Tennessee (Home of Country Music). It is roughly equal in distance from Chattanooga and Memphis, Tennessee too. U.S. Highway (Hwy 64) is the main road adjacent to the park. Once on it, it is within 10 minutes of I-65, Exit 14. So, the park has easy East and West as well as North and South access to major work markets and is sandwiched between two of the hottest growth markets in the South, Huntsville, AL and Nashville, TN. Rents will continue to increase as affordable housing is in short supply.

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Park Information

Community Type: All Age
Number of MH Lots: 28
Total Occupancy: 93.0 %
Year Built: 1985
Size: 4 acre(s)

Financial Information (Actual)

Gross Income: $194,000
Operating Expense: $92,000
Net Operating Income: $102,000
Expense Ratio: 47.4 %

RV Information

Number of RV Lots: 0

Utility Information

Water: City
Water Paid By: Tenant - Individual Service
Sewer: Septic

Park-Owned Homes

Number of Park-owned Homes: 26
Average Rent for Park-owned Homes: $705