Mobile Home Park Details

Cap Rate: 7.9%
Listing ID: 3475114
Posted On: Aug 3, 2023
Updated On: Dec 20, 2023

Description

Exclusively Listed By: Jennifer Stein Real Estate Inc. & MFI Commercial

** Cap Rate Includes Lot Rent*

Overview:

Location: Tifton, GA

Size: 4 acres

Total Lots: 42

Occupied Lots: 30

Vacant Lots: 12

Unique Selling Proposition: The only park in Tifton that can bring new mobile homes onto vacant lots.

Income Sources:

--Lot Rents: $230 per lot

--Park-Owned Home Rents: $530 per home

--Lease Purchase Agreements:
Varies (Mortgage To Own Homes range from $330-$555)

Lot Breakdown:

--Tenant Owned Homes (TOH): 22 lots

--Mortgage To Own Homes (MTO): 6 lots (with notes)

--Park Owned Homes (POH): 5 homes (2 rented, 3 vacant)

Vacancies:

--Park Owned Homes: 3

--Lots: 9

Improvements:

--Roads: Recently paved at a cost of $20,000 in May 2023.

--Fencing: Newly installed around the property.

--Demolitions: The city plans to demolish POHs on lots 2 & 3, which
will add value to the property.

Additional Value:

--The national average value for a mobile home is $5,000. With the city's plan to demolish two POHs, this will add an estimated value of $10,000 to the property.

Analysis:

The South Central Avenue Mobile Home Park presents a unique investment opportunity due to its grandfathered status in Tifton. With the ability to introduce new mobile homes on vacant lots, the park has a competitive edge over other parks in the area. The recent improvements, such as paved roads and fencing, enhance the appeal and functionality of the park. The planned demolitions by the city will further increase the property's value. The combination of lot rents, park-owned home rents, and lease purchase agreements provides diversified income streams for potential investors.

Location

South Central Avenue Mobile Home Park: Investment Highlights

Prime Location:

--Proximity to Major Cities and Highways: The park is strategically
positioned, offering easy access to major highways and cities.

--Immediate Access: Just 1 mile away from I-75, ensuring quick
connectivity.

Regional Connectivity:

--Albany, GA: 40 miles

--Southwest Georgia Regional Airport: 45 miles

--Tallahassee, FL: 90 miles

--Savannah, GA: 179 miles

--Atlanta, GA: 181 miles

--Strategic Advantage: Being just 2.5 hours south of Atlanta, the park is in a prime location for those looking for a peaceful residence away from the hustle and bustle but still within a reasonable distance from a major city.

City's Positive Trajectory:

Downtown Redevelopment:
--Tifton's recent award of a $955,140 grant from the Georgia Department of Community Affairs for downtown redevelopment is a testament to the city's growth potential and commitment to progress.

Increased Housing Demand:
With the city's positive trajectory, there's a potential uptick in housing demand, making investments in housing sectors like mobile home parks more lucrative.

Recent Improvements:

--Paved Roads: Roads were recently paved at a cost of $20,000 in
May 2023, ensuring better infrastructure for residents.

--New Fencing: New fencing has been installed around the
property, providing an added layer of security and privacy.

--Planned Demolitions: The city's plan to demolish POHs on lots 2
& 3 will further increase the property's value. Based on the
national average value for a mobile home, this move is expected to add an estimated value of $10,000 to the property.

Conclusion:

The South Central Avenue Mobile Home Park offers a compelling investment opportunity. Its strategic location, combined with the city of Tifton's growth trajectory and the park's recent and planned improvements, make it an attractive proposition for potential investors. The park's proximity to major highways and cities ensures easy accessibility, while the city's redevelopment plans hint at a bright future and potential increase in housing demand.

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