Mobile Home Park Details

Purchase Method: Cash, New Loan
Cap Rate: 7.0%
Listing ID: 5440750
Posted On: Apr 26, 2024
Updated On: Sep 11, 2024

Description

The Missouri Mobile Home Park Portfolio – a solid investment opportunity featuring two parks (Kraft MHP & Riley MHP) that are 2.9 miles apart.

Kraft MHP & Riley MHP are turnkey parks and your opportunity to own 105 pads in the heart of Moberly, MO. This portfolio delivers solid cash flow and has immediate upside potential to increase that right away.

There are 58 tenant owned homes, 19 park owned homes, 3 rent to own, 25 vacant lots, 1 single family home, 1 shop, and 12 vacant acres. The parks were built in 1987 (Riley) and 1981 (Kraft). Both parks have a track record of stability and profitability. Management is currently run with a local property management company that is interested in an ongoing role.

This portfolio has tremendous upside and is ready for you to take it to the next level:

- Raising rents immediately would raise NOI by ~$30,000/year.
- Renting out shop would raise NOI by $10,000/year.
- Development or sale ($80k+/-) 12 vacant acres at Kraft MHP.
- Continuing to transition POH to RTO/TOH – currently below 25% TOH at both parks.
- Infill 25 vacant lots between both parks
- Transition of utilities/trash at Riley MHP to the tenants to reduce costs.

Over $100k of capital invested in both properties including:

- (8) homes remodeled and re-rented
- (3) used homes purchased and infilled into parks
- Electrical and set-ups on (5) additional pads for future infill
- Sewer improvements for drainage

Kraft MHP is 20 acres and has 29 TOH, 18 POH, 1 RTO, 1 single family home, 1 shop, 12 vacant acres with an average lot rent of $290/mo (market $325+/mo) and average POH rent of $715/mo (market $825+/mo). The park is on city water/sewer and it is individually metered and billed to residents. Garbage is billed to residents and the roads are in good condition.

Riley MHP is 9 acres and has 29 TOH, 1 POH, 2 RTO, and 14 vacant lots with average lot rent of $290/mo (market $325+/mo) and average POH rent of $775/mo (market $825+/mo). The park is on city water/sewer and is billed to the owner. Garbage is billed to residents. Transitioning these bills to the residents would reduce costs.

Total:
- 58 tenant owned homes
- 19 park owned homes
- 3 rent to own homes
- 25 vacant lots
- 1 sfh
- 1 vacant shop

Sales Information:
- $2,750,000
- Cap Rate: 7% (current)
- Cap Rate in <6mo: 10%

Please contact Toby for all DD items.

Thank you

Location

Location:
Moberly is a city in Randolph County, MO and has a population of ~14,000.

Moberly's median home price of $121,800 is 64.0% less expensive than the national average and 42.6% less than the Missouri average. Renting a two-bedroom unit costs $760 per month, 46.9% cheaper than the national average.

With a median income of $41,000 and a thriving real estate market, Moberly presents a compelling opportunity for investors seeking high returns and long-term growth potential.

Supported by manufacturing, healthcare, education, and retail, Moberly offers a mix of local businesses and larger corporations, ensuring a stable economic environment and ample job opportunities.

With a BestPlaces Cost of Living score of 74.5, Moberly's total cost of necessities is 25.5% lower than the U.S. average. A minimum annual income of $23,400 for a family and $23,200 for a single person is recommended for comfortable living.

Moberly is an affordable place to live, with housing costs below the national average. Groceries and gas expenses are reasonable, and the city offers low-cost entertainment options.

Situated within reach of Columbia and Jefferson City, Moberly combines small-town charm with access to urban amenities, making it an attractive destination for residents and investors alike.

It is located:
36 miles north of Columbia, MO
157 miles NW of St. Louis
132 NE of Kansas City

1028 Sinnock Avenue, Moberly, MO, 65270 - Kraft MHP
1510 State Hwy JJ, Moberly, MO 65270 - Riley MHP

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