Mobile Home Park Details
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Purchase Method:
Cash, New Loan
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Cap Rate:
9.2%
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Listing ID:
783720
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Posted On:
Feb 8, 2017
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Updated On:
May 8, 2017
Description
Located in an area without rent control with a high demand for affordable housing Desert Vista offers an investor huge infill upside in a park with huge spaces ideal for families. Manager says he has a 12-15 families ready to move in via a waitlist however current owner has not put in any new homes to accommodate them. There are currently 22 park-owned that convey with sale some of which are awaiting title in order to rent or sell. Rents of $345 plus utilities starting February 1. Two bedroom - two bath apartments in Needles with no amenities have market and tax-credit rents of $550-650 and all surveyed apartment rental comps have 10-15% vacancy rates which indicates a strong affordable housing market. Closest other mobile home parks are located in Arizona in Bullhead City and have lot rents between $350-400 however many residents in this demographic prefer living in California due to superior social programs.
Location
The park mostly consists of fixed-income retirees and some families. The park is direct-billed from City of Needles and Southwest Gas for electric and gas and water was just submetered and passed all CPUC standards in December 2016 and that revenue is on the rent roll. Also a rent raise to $345 is effective February 1, 2017. There is a manager currently in place who handles collections, meter reading, and some maintenance work who lives in an apartment above the clubhouse. The clubhouse has pool tables, bathrooms, and a pool so there is an opportunity to add revenue via RV traffic as spaces get filled. Seller recommends filling up spaces on a RTO/sales program at a comparable price to market apartment rents while offering additional space and amenities. The park has wide roads and cul-de-sacs which would make it appealing to families as it was built like a planned HOA single family development would be. See below for financials, rent roll, and park-owned inventory that conveys with sale. Park was purchased in a distressed state 18 months ago with a reported gross revenue of $222,000
Amenities
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Laundromat
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Pool
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Club House
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Storage
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Utility Information
| Water: |
City |
| Water Paid By: |
Tenant - Submetered
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| Sewer: |
City |
