Overview of the Columbia, TN Mobile Home Park Acquisition

In June 2023, the Keel Team and its investment partners acquired a 138-lot mobile home park in Columbia, Tennessee for $4,000,000. The project represented a classic value-add mobile home park investing opportunity — a well-located property with strong fundamentals but underperforming operations. The acquisition involved an initial equity investment of $1.92 million and marked another example of how a systematic improvement plan can transform community performance and investor returns over a relatively short period.

The Columbia mobile home park offered several levers for value creation, including infilling vacant pads, renovating homes, and bringing lot rents closer to market levels. The Keel Team’s asset management and operational oversight allowed for steady, measurable progress from day one.

Strategic Investment Approach

Identifying Value-Add Potential

The Columbia property already had solid bones: established infrastructure, stable occupancy, and demand for affordable housing in the surrounding Maury County area. However, numerous vacant pads and a mix of dated homes provided clear opportunities to increase both revenue and community appeal.

The Keel Team’s due diligence focused on identifying these inefficiencies. By analyzing comparable mobile home park rents, sales, and occupancy trends in Columbia, the team determined that incremental improvements and operational consistency could meaningfully lift the property’s net operating income (NOI).

Capital Structure and Financing

The total acquisition price of $4 million was funded with $1.92 million in equity and debt secured solely by the general partners. The recourse debt structure protected limited partner investors, ensuring they were not signatories on any loan obligations. This approach allowed investors to benefit from the upside potential of the deal without bearing recourse risk.

Executing the Value-Add Plan

Physical and Operational Improvements

After closing in June 2023, the Keel Team implemented a disciplined improvement plan that targeted several key areas:

1. Infilling Vacant Pads: The property contained multiple empty pads that were quickly prepared for new homes. Adding occupied lots directly increased the community’s revenue base and stabilized cash flow.
2. Renovating Existing Homes: Older or under-maintained mobile homes were renovated to improve livability and aesthetics. Upgraded units attracted new residents and reduced turnover.
3. Modest Lot Rent Adjustments: The team carefully introduced moderate rent increases to align with local market rates while maintaining affordability for residents.
4. Operational Efficiency: Improved management systems and expense controls helped enhance profitability without compromising resident experience.

These steps collectively improved the property’s appearance, occupancy, and overall community morale — key drivers of sustainable NOI growth.

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Results of the Improvement Initiatives

The outcomes of these initiatives were evident within the first year of ownership. By stabilizing occupancy and enhancing the living environment, the Keel Team positioned the Columbia mobile home park for early cash flow distributions and a strong refinance outcome.

Cash Flow Distributions to Investors

Consistent Early Returns

The first cash flow distribution occurred in December 2023 — only six months after acquisition — and totaled $123,396.54. This early payout signaled strong operational traction and validated the effectiveness of the improvement plan.

From that point, distributions followed a consistent quarterly schedule. Between December 2023 and August 2025, investors received the following preferred returns:

• December 2023: $123,396.54
• March 2024: $34,301.88
• June 2024: $34,300.93
• September 2024: $47,999.85
• December 2024: $75,396.35
• March 2025: $47,999.75
• June 2025: $47,999.75
• August 2025: $28,788.74

In total, preferred distributions reached $440,183.79, reflecting the property’s improved operations and strong financial discipline.

Refinancing and Capital Events

Major Refinance Achievement

On August 13, 2025, the Keel Team completed a successful refinance of the Columbia mobile home park. This capital event served as a key milestone, demonstrating the project’s increased value and operational maturity.

Through the refinance, investors received $3,337,521.94, effectively returning all of their original equity — and more. Combined with previous cash flow distributions, the total paid out to investors reached $5,697,705.73 against the original $1.92 million investment.

Summary of Capital Outcomes

• Initial Equity Investment: $1,920,000
• Preferred Distributions: $440,183.79
• Refinance Distributions: $5,257,521.94
• Total Distributions: $5,697,705.73
• Total Return on Capital: $3,777,705.73
• Hold Period: Approximately 25 months (2.08 years)

These results illustrate how disciplined asset management and well-timed capital events can deliver compelling outcomes in mobile home park investing.

Investor Returns and Ongoing Ownership

Strong Cash-on-Cash Performance

The partnership achieved a 94.44% annualized cash-on-cash ROI, a reflection of both the efficient improvement execution and the favorable refinance terms secured in 2025. Importantly, the limited partners retained ownership in the property after receiving their full capital back — setting the stage for what many investors call “infinite returns.”

What “Infinite Returns” Mean

In this context, “infinite returns” refer to a scenario where investors have recovered their entire initial equity but continue to own an asset that generates ongoing cash flow and appreciation potential. Because no original capital remains at risk, any future profits or appreciation effectively represent unlimited return potential on a zero-basis investment.

This structure aligns with the Keel Team’s long-term focus on wealth creation through well-executed mobile home park operations rather than short-term speculation.

Factors Behind the Columbia Success Story

1. Operational Discipline

Every improvement decision was guided by operational metrics — occupancy, expense ratios, and rent collection consistency — rather than by broad assumptions. This data-driven approach allowed the team to maintain financial control and scale up improvements in a sustainable way.

2. Market Timing and Debt Strategy

By refinancing in August 2025, the team captured increased property value while securing long-term financing terms that preserved flexibility for future capital events. Limiting recourse obligations to general partners further insulated investors from downside risk.

3. Resident Retention and Community Care

The Columbia mobile home park improvements were designed not only to increase value but also to enhance resident satisfaction. Maintaining affordable lot rents and improving amenities created a stronger sense of community stability — a major driver of long-term success in the affordable housing sector.

Future Potential and Upside

Additional Refinance Opportunities

An earn-out loan option remains available approximately 12 months after the 2025 refinance. This could unlock additional capital for distribution or reinvestment, depending on market conditions and property performance. While no outcome is guaranteed, such flexibility provides a valuable optionality layer for investors.

Continued Property Appreciation

With occupancy stabilized and community quality improved, the Columbia mobile home park remains positioned for ongoing appreciation. Future value increases may stem from further infill, ongoing operational efficiencies, or market rent adjustments as the Columbia area continues to grow.

Long-Term Ownership and Infinite Returns

Because the initial equity has been fully returned, all future cash flow and appreciation now flow to investors as “infinite returns.” This type of long-term outcome highlights why many investors view mobile home parks as one of the most resilient and rewarding sectors in private real estate syndications.

Key Takeaways from the Columbia, TN Case Study

1. Strategic Improvement Delivers Tangible Value

Simple, well-executed initiatives — like infilling lots, renovating homes, and adjusting rents — can dramatically increase the financial performance of a mobile home park. The Columbia property demonstrates how focusing on fundamentals can lead to measurable value creation.

2. Protecting Investors Through Structure

By using recourse debt signed only by general partners, the Keel Team limited investor exposure while maintaining strong leverage terms. This structure balanced opportunity with risk management.

3. Rapid Return of Capital Creates Infinite Upside

Returning investor capital within two years is an exceptional outcome. Once the equity was fully repaid through distributions and refinancing, all remaining ownership benefits became pure upside — illustrating the power of value-add mobile home park investing when executed effectively.

Conclusion

The Columbia, Tennessee mobile home park case study reflects how strategic operations, disciplined financing, and a resident-focused improvement plan can transform an underperforming asset into a high-performing community.

Over roughly 25 months, the Keel Team increased value, stabilized operations, and delivered exceptional returns while maintaining affordable housing for residents. With continued ownership, the property now offers investors the rare opportunity for ongoing “infinite returns” — income and appreciation potential on an asset with no original equity at risk.

While results can vary across properties and market cycles, the Columbia project illustrates the foundational principles that make value-add mobile home park investing such a powerful long-term wealth-building strategy.

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Disclaimer:

The information provided is for informational purposes only and is not investment advice or a guarantee of any kind. We do not guarantee profitability. Make investment decisions based on your research and consult registered financial and legal professionals. We are not registered financial or legal professionals and do not provide personalized investment recommendations.