Contact Information
Jason Bergan
License: S65228000
Mobile Home Park Details
- Price: $220,000
- Purchase Method: Cash, New Loan
- Cap Rate: 6.1%
- Listing ID: 6687179
- Posted On: Aug 9, 2024
- Updated On: Sep 20, 2024
Description
In-Fill Ready
• The subject property has a total of 28 lots. Each lot has 16'x55'
concrete slabs poured for each lot along with a designated garage stall next to the lot.
• Utilities are connected to each lot for immediate hook-up and home
placement.
• Currently, there are 5 occupied homes located at the park. Two of
those homes are owned by the park and included in the sale. The
seller has the title to these homes in his possession.
Park Infrastructure
• The park is located along three city maintained roads with one park
owned and maintained road running through the middle of the park.
• The west half of the park has cast iron sewer lines and fuse box
pedestals, while the east half of the park has PVC sewer lines and
breaker box pedestals.
The water, sewer, electricity, and natural gas are all directly billed to
the tenants. The garbage is paid for by the park owner and is collected in a dumpster located in the center of the park.
• There are 26 garage stalls on the property. Each lot (except for lots 14 and 28) have a designated garage stall. All of the garages are double stall buildings with a divider in the middle. Lots 7 and 21 are single stall garages.
Future Income Projections
• The future income projections are based on raising lot rents to
$250/month and in-filling the community at a rate of 3 homes per
year. In the final year (Year 10) the rent is raised to $275/month.
• The future income projections are also based on selling the park-
owned homes to the tenants for a cash sale at a price of $10,000 each in Year 2.
Future Expense Projections
• The future expense projections are based on transportation and set-up
fees of $10,000 per home.
• The expense projections assume an at-cost sale of the home to the
prospective tenant, therefore, it has been left out of the projections.
Abandoned Homes
• There are four abandoned homes that will need to be either removed
or rehabilitated upon purchase of the property.
Location
• Renville, MN is located two hours west of Minneapolis and one and
a half hours northwest of Mankato.
• Renville has had a steady population of about 1,300 people since
the mid-2000s.
• The most common employment sectors are manufacturing, health
care, and skilled trades careers. These three sectors make up about
43% of the employment opportunities in the area.
• The largest employers in the area include: Southern MN Beet Sugar
Co-op, Revier Cattle Company, Schweiss Doors, Loftness
Manufacturing, Warner Manufacturing, and K&M Manufacturing.
• The average household income in Renville is about $65,000 per
year and the average property value is $100,000.
Amenities
- Storage
Park Information
Community Type: | All Age |
Number of MH Lots: | 28 |
Total Occupancy: | 18.0 % |
Year Built: | 1973 |
Average MH Lot Rent: | $140 |
Size: | 4 acre(s) |
Financial Information (Actual)
Gross Income: | $18,300 |
Operating Expense: | $4,828 |
Net Operating Income: | $13,472 |
Expense Ratio: | 26.4 % |
Debt Info: | No Debt on the Property |
Lot Information
Singlewide Lots: | 28 |
Doublewide Lots: | 0 |
Triplewide Lots: | 0 |
Park Model Lots: | 0 |
RV Information
Number of RV Lots: | 0 |
Utility Information
Water: | City |
Water Paid By: | Tenant - Individual Service |
Sewer: | City |
Park-Owned Homes
Number of Park-owned Homes: | 2 |
Average Rent for Park-owned Homes: | $535 |