Mobile Home Park Details
- Purchase Method: Cash, New Loan
- Cap Rate: 10.8%
- Listing ID: 543930
- Posted On: Jun 24, 2015
- Updated On: May 30, 2017
Description
- 48 MH, 2 RV, 2 BR Home, Two 1 BR Apartments
- Only $5,500 per site
- Direct-billed electric and gas
- Park has been mis-managed, currently under 50% occupancy down from 2013. Huge upside opportunity on filling vacancies and water billing
- 26 mobile homes convey with sale, some on rentals most empty
- Nearby RV parks fill up every winter with snowbirds offering revenue source for that demographic
- Located halfway between Phoenix and Mexican beach resort town of Puerto Penasco
- Low Rent Comps, only $200/mo
- Ajo has a population of 3700 with half retirees and the rest working for Freeport McMoran mining corporation or for Border Patrol. Much-rumored mine re-opening would likely greatly increase value of park.
Location
Ajo MHP is projected to be above $55,000 in gross revenue in 2015 based on current rent toll allowing for over a 10% cap rate on that park at a standalone asking price of $250,000. The two parks and the duplex are on three separate parcels and can be sold separately or together. Duplex as a standalone is available for $45,000 and Sonoran MHP is available for $60,000 or just $2,000 per space and both must be paid in cash. Ajo MHP available for $240,000 or just $12,000 per space. Electric and gas are direct billed to each tenants and seller is currently covering all water costs so immediate upside there. There are 8 septic tanks on the properties combined and the seller will pay for the ADEQ required inspection.
Park Information
| Community Type: | All Age |
| Number of MH Lots: | 52 |
| Total Occupancy: | 50.0 % |
| Year Built: | 1968 |
| Average MH Lot Rent: | $200 |
| Size: | 6 acre(s) |
Financial Information (Pro Forma)
| Gross Income: | $82 |
| Operating Expense: | $44 |
| Net Operating Income: | $37 |
| Expense Ratio: | 53.7 % |
Lot Information
| Singlewide Lots: | 46 |
| Doublewide Lots: | 2 |
| Park Model Lots: | 2 |
RV Information
| Number of RV Lots: | 2 |
Utility Information
| Water: | City |
| Water Paid By: | Park |
| Sewer: | Septic |
Park-Owned Homes
| Number of Park-owned Homes: | 28 |
| Average Rent for Park-owned Homes: | $450 |