Mobile Home Park
St.Louis, MO - MSA
In June 2017, the Keel Team and investment partners purchased a 67 lot mobile home park outside of St. Louis, MO.
Original Acquisition Price
March 2, 2018
Equity
Initial Cash Investment
Improvement
Summary
Through improvement initiatives such as: filling vacant pads, removing run down homes, correcting utility bill back equations so tenant paid recapture was increased, modest lot rent increases, and others, we were able to improve the park operations, increase NOI, and achieve a significant value increase. The financial results of these efforts are summarized below:
Debt
Collateral
Recourse debt for both partners.
Payout
Cash flow distribution
On December 2018, the first cash flow distribution was $85,000.
Capital
Cash out refinancing event
On April 18th, 2019 the first refinancing event occurred.
Refinancing
Event
Investor Distributions
The partnership received $783,917.17 from the refinancing event. Plus an additional cash flow excess distribution of $65,000 was paid to investors at this time. The new debt is recourse.
Capital
Summary
- $85,000 - Cash flow distribution
- $783,917.17 - Cash out refinancing distribution
- $65,00 - Cash flow distribution
- $933,917.17 - Total Distributions
- $400,000 - Initial equity investment
- $533,917.17 - Total return on capital
Timeframe
- 21.6 Months = 1.8 Years
ROI
- 74.15% - Annualized cash on cash ROI for the partnership
*And the LP investors stay in the deal after the refinance for infinite returns.
Future Potential ROI Opportunities
Infinite Returns
Infinite returns since all of the original equity investment has been returned, yet we still own the MHP.
Refinance
Additional $112,000 earn out loan available 12 months after refi (possible additional future return per refi loan).
Savings
Forced savings of approximately $520,000 due to the equity remaining in the property after the April 2019 refinancing event.
*Based on refinance appraisal values.
Appreciation
Additional potential equity appreciation as the MHP continues to increase in value.
Interested in learning more?
Get in touch with us today to learn more about mobile home park investing!
LEGAL DISCLOSURE: All investment offerings have a high degree of risk. Results may vary. Past performance is not a guarantee of future success.
