26 lot mobile home park
7.5 acres
1120 Old State Rd 60 Salem, IN 47167
MILLION DOLLAR potential turn around upside!
Includes a stick built home valued at around $100,000
CITY WATER, CITY SEWER, CITY STREETS
Water, sewer and trash directly billed to tenants from city! Zero water/sewer/trash bills to you
City streets (no snow plowing fees during winter)
Lot rents are currently underpriced at $150. Market rent should be around $220
Expenses:
Insurance – $500
Property Taxes – $3300
Annual Permit – $100
Repairs/Maintenance/Mowing – $3000
Yearly Expenses Total: $6900
Average monthly would be: $575
Reason for selling: Need time and capital to expand my other business
Selling below market for quick sale. Asking only $379,000.
Out of state owner. Park runs itself. Have not been to park in over 6 years!
Great tenants and great manager.
Deposits are made to our local bank account
OPTION 1: Owner finance at 20% down with 5% interest
That is a $75,800 down payment with monthly minimum payments of $1,263
Currently park has 10 owner occupied lots and 1 stick built home with a 10 year+ long term tenant and never any repairs requested in past 5 years
On day 1 with raising lot rents to $220 per lot and raising house rent to $550, monthly income would be $2750.
$2750 – $575(average monthly expense) = $2175
$2175 – $1263(monthly loan payment) = $912
$912×12= $10,944 profit per year
$10,944/$75,800 = 14.44% YIELD
or
OPTION 2: 10% down with 6% interest
That is $37,900 down down payment with monthly minimum payments of $1,705
Currently park has 10 owner occupied lots and 1 stick built home with a 10 year+ long term tenant and never any repairs requested in past 5 years
On day 1 with raising lot rents to $220 per lot and raising house rent to $550, monthly income would be $2750.
$2750 – $575(average monthly expense) = $2175
$2175 – $1705(monthly loan payment) = $470
$470×12= $5640 profit per year
$5,640/$37,900 = 14.9% YIELD
Filling up the entire park would make total monthly collections: $6,270
Which would have a valuation of $960,000 at a 7% cap rate!
Very beautiful picturesque city.
Population is increasing.
Brand new Super Walmart just built in the city
Demand is extremely high for affordable homes in Salem, IN
A lot of opportunity here for the future owner.
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