Mobile Home Park
Youngstown, OH
In May 2018, the Keel Team purchased a 80 lot mobile home park outside of Youngstown, Ohio.
Original Acquisition Price
May 7, 2018
Equity
Initial Cash Investment
Improvement
Summary
Through improvement initiatives such as: filling vacant pads, correcting maintenance procedures on utility infrastructure, removing run down homes, modest lot rent increases, repairing roads, installing new signage and fencing, hiring new management, 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 for all equity partners.
Payout
Returns
No preferred return paid, all excess cash flow was reinvested.
Capital
Cash out refinancing event
On March 26th, 2020 the first refinancing event occurred.
Refinancing
Event
Investor Distributions
The partnership received $1,384,247.41 from the refinance event. The new debt is non-recourse.
Capital
Summary
- $1,384,247.41 - Cash out refinancing event distribution
- $375,174.80 - Initial equity investment
- $1,009,072.61 - Total return on capital
Timeframe
- 23 Months = Approximately 2 Years
ROI
- 134.48% - 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 mobile home park property.
Refinance
Additional earn out loan available 12 months after refi (possible additional future return per refi loan).
Savings
Forced savings of approximately $600,000 due to the equity remaining in the property after the March 2020 refinancing even.
*Based on refinance appraisal values.
Appreciation
Additional potential equity appreciation as the mobile home park 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.
