Mobile Home Park Details
- Purchase Method: New Loan
- Cap Rate: 8.5%
- Listing ID: 987014
- Posted On: Sep 7, 2018
- Updated On: Jul 9, 2019
Description
The park is well located in a stable town of Chetwynd, BC about 3 ½ hrs. north of Prince George, BC and 1hr 15 minutes south of Fort St. John, BC. Chetwynd has a very diversified and robust economy and vacancy rates for rentals is near zero.
Park services are by way of 3 local wells for water. One (1) lagoon for sewage which is shared with a neighboring property thus reducing the cost of maintenance. The sewage is gravity fed to the lagoon, so no pumps are required. The park sits on 7.76+/- acres and consists of 17 fully serviced pads with zero (0) vacancies. Even though one (1) pad is vacant it has always been rented to one of the tenants for storage and parking. The 2400 sq. ft. house is currently rented on a one-year lease. Current rents are $230/month with an increase to $239/month as of June 1, 2018. Two pads are set at $300/month. The house is rented at $2000/month plus utilities on a yearly lease. There is also a small revenue stream from excess water billing. This has also reduced the overall water costs. The park provides water, sewer, garbage pickup, snow removal while the tenants pay for their own hydro and natural gas. There have been no vacancies for several years.
It should be noted that in the past 18 months there has been considerable improved to streamline the operations of the park. The 2400 sq. ft. house is an upper end, executive style 3-bedroom residence. The previous owner who was a building contractor built it for himself as his ‘dream home’. The house is set apart from the other mobile homes in a private setting. It boasts a 20’ vaulted ceiling and large master bedroom. Many additional renovations have recently been completed.
A remotely monitored pump house has also been implemented for easy monitoring via the internet.
Here is the info that I have for the 3 wells:
Well (1) Deep well with submersible pump
300 feet deep with 12 GPM recommended operating capacity.
Well (2) Spring fed well/cistern
2.4 m diameter
2.8 m deep
Well (3) Spring fed well
approx. 1.5 m diameter x 3.5 m deep
I am not sure on the gallons per minute of the two spring fed wells, but they are quite robust, providing nearly all, if not all, the water the park requires. The last time we used the deep well for any length of time was last fall when I replaced the float switch on the one spring fed well. On average the park goes through 150 m3 of water per month. That would equal 5000 L/day or 208 L/hr. or 3.47 L/min on average. It has been our experience that we just use the two spring fed wells and almost never use the deep well. No particular reason for using one more than the other, it’s just how I have the float switches set up. The key to the water at this park was when the meters were installed, and excess water use was billed to the tenants. This cut out tremendously wasteful practices by the tenants. We can tell quite quickly if a tenant has a problem with a leaky hot water tank or reverse osmosis, etc. This has saved countless volume over time.
The quality of the water is very good as the lab report shows.
Park Information
Number of MH Lots: | 17 |
Total Occupancy: | 100.0 % |
Year Built: | 1982 |
Average MH Lot Rent: | $239 |
Size: | 8 acre(s) |
Financial Information (Actual)
Gross Income: | $76,020 |
Net Operating Income: | $55,368 |
RV Information
Number of RV Lots: | 0 |
Average RV Lot Rent: | $0 |
Utility Information
Water: | Well |
Water Paid By: | Park |
Sewer: | Septic |