Mobile Home Park
Vermillion, SD
In March 2021, the Keel Team and investment partners purchased a 46 lot mobile home park in Vermillion, SD for $900,000.00.
Original Acquisition Price
March 31, 2021
Equity
Initial Cash Investment
Improvement
Summary
Through improvement initiatives such as: filling vacant pads, removing run down homes, converting utility payment from park paid to tenant paid, 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 September 2021, the first cash flow distribution was $22,493.47.
Capital
Cash out refinancing event
On May 2024, the first refinancing event occurred.
Refinancing
Event
Pro-Rata Investor Distributions
The partnership received $814,361.42 from the refinancing event. The new debt is non-recourse, Fannie Mae agency debt.
Pro-Rata Distributions Paid Monthly
Starting in Month 6
- September 2021: $22,493.47
- October 2021: $3,748.92
- November 2021: $3,748.92
- December 2021: $3,748.92
- January 2022: $3,748.92
- February 2022: $3,748.92
- March 2022: $3,748.92
- April 2022: $3,748.92
- May 2022: $3,748.92
- June 2022: $3,748.92
- July 2022: $3,748.92
- August 2022: $3,748.92
- September 2022: $3,748.92
- October 2022: $3,748.92
- November 2022: $3,748.92
- December 2022: $3,748.92
- January 2023: $3,748.92
- February 2023: $3,748.92
- March 2023: $3,748.92
- April 2023: $3,748.92
- Total Pro-Rata Distributions Paid to Investors: $93,722.95
Capital
Summary
- $93,722.95 - Pro-Rata distributions
- $814,361.42 - Cash out refinancing distribution
- $908,084.37 - Total distributions
- $553,000.00 - Initial equity investment
- $355,084.37 - Total return on capital
Timeframe
- 24 Months = 2 Years
ROI
- 32.11% - Annualized cash on cash ROI
*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 supplemental loan available 12 months after refi (possible additional future return per refinance loan terms).
Savings
Forced savings of approximately $1,184,000.00 due to the equity remaining in the property after the May 2023 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.
