The Southeast Michigan mobile home park portfolio marks one of Keel Team’s standout success stories. With strategic planning, hands-on improvements, and a commitment to delivering value, this investment exemplifies why mobile home park investing is a growing field. Here’s a detailed look into the acquisition, refinance, and sale of these properties.

Acquisition: A Vision for Opportunity

In June 2021, the Keel Team, alongside investment partners, acquired a portfolio of three mobile home parks located in Alma, Breckenridge, and Hillsdale, Michigan. This $3.38 million acquisition was fueled by an equity investment of $2.33 million, raised from limited partner investors.

These mobile home parks presented an opportunity for growth. With vacant lots and homes in need of renovation, the team saw the potential to increase the mobile home parks’ operations and profitability.

Strategic Improvements to Drive Value

The Keel Team immediately launched improvement initiatives to enhance the portfolio. Key steps included:

• Filling vacant lots: Maximizing occupancy to improve cash flow.
• Renovating run-down homes: Removing or upgrading older units to attract tenants.
• Modest lot rent increases: Aligning rent prices with market rates while maintaining affordability.

These changes not only improved the aesthetic and operational appeal of the mobile home parks but also significantly boosted their Net Operating Income (NOI) and ultimately value.

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The Refinancing Success Story

By May 2023, the improvements yielded remarkable financial results, enabling the Keel Team to refinance the portfolio with Fannie Mae agency debt. The refinancing event highlighted the increased value of the mobile home parks and provided substantial distributions to investors.

Key Refinancing Results

• Refinancing Payout: $2.94 million was distributed to investors.
• Additional Distributions: Investors received a cash flow excess distribution of $98,857.63.
• Preferred Distributions: Paid monthly, totaling $370,210.13 over two years.

This refinancing allowed investors to recoup all of their initial equity investment while still retaining ownership in the mobile home parks. This resulted in “infinite returns” — a scenario where all original capital has been returned, yet the investment continues to generate returns.

ROI Highlights

• Annualized ROI: 21.04% annualized cash-on-cash ROI over two years.
• Equity Savings: Approximately $5.33 million in equity remained within the portfolio after the refinance, ensuring additional appreciation potential.

The success of the refinancing strategy underscored the Keel Team’s ability to create value for investors while maintaining long-term upside potential.

Final Exit: A Profitable Sale

In January 2025, the Keel Team finalized the sale of the Southeast Michigan portfolio for $9.4 million. This sale marked the conclusion of a transformative journey for the three mobile home parks.

Sale Results

• Sale Price: $9.4 million.
• Proceeds to Investors: $2,566,684.88.
• Assumed Debt: The buyers assumed $6.37 million in agency debt, reflecting the Keel Team’s initial basis after the refinance event.

The sale represented the culmination of years of strategic improvements and operational efficiency. The return on investment demonstrated the effectiveness of the Keel Team’s mobile home park investing strategy.

A Mobile Home in the SE Michigan Portfolio

Lessons from the Southeast Michigan Mobile Home Park Investing Success

The Southeast Michigan portfolio stands as a testament to the potential of mobile home park investing. Here are some takeaways from this story:

1. Improvements Add Value

Investments in infrastructure, home renovations, and tenant experience can directly contribute to increased NOI and property value potential. In this case, filling vacant lots and modest rent increases played a pivotal role in executing the business plan.

2. Refinancing Unlocks Capital

Refinancing allowed the Keel Team to distribute significant returns to investors while retaining ownership. This strategy can create opportunities for infinite returns and future refinancing events.

3. Long-Term Planning Pays Off

By holding and improving the properties before the sale, the Keel Team maximized the portfolio’s value. Strategic timing ensured the best possible exit price for the investors involved in this deal.

4. Partnering with the Right Team

Collaborating with experienced professionals in mobile home park investing potentially ensures that each step, from acquisition to sale, is executed with precision.

Why Mobile Home Park Investing Can Work

Mobile home parks are a historically resilient asset class with generally low tenant turnover, consistent demand, and high return potential. The Southeast Michigan success story highlights these typical advantages:

• Affordability: Mobile home parks provide affordable housing options, potentially ensuring steady demand.
• Low Supply Growth: The limited supply of new mobile home parks can increase the value of existing ones.
• High Cash Flow: Properly managed trailer parks have the potential to generate significant monthly income.

The Keel Team capitalized on these strengths while adding value through hands-on improvements.

What’s Next for the Keel Team?

The Southeast Michigan portfolio is just one example of the ability to possibly create value in mobile home park investing. With a proven track record and a commitment to delivering results, the Keel Team continues to identify new opportunities and partnerships.

Exploring Mobile Home Park Investing Opportunities

The success of the Southeast Michigan mobile home park portfolio showcases the potential of this unique asset class. With nearly a decade of experience and a focus on value-add strategies, the Keel Team demonstrates how thoughtful improvements can create significant value potential while preserving affordable housing for those in need. Mobile home park investing continues to be a compelling avenue for those seeking impactful and rewarding real estate ventures.

Final Thoughts: A Win-Win for Everyone

The story of the Southeast Michigan mobile home parks is a powerful reminder of what’s possible with strategic investing. From acquisition to sale, every step of this journey reflects the Keel Team’s dedication to creating value for investors while preserving affordable housing options for thousands in need.

Are you looking for MORE information? Book a 1-on-1 consultation with Andrew Keel to discuss:

• A mobile home park deal review
• Due diligence questions
• How to raise capital from investors
• Mistakes to avoid, and more!

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 own research and consult registered financial and legal professionals. We are not registered financial or legal professionals and do not provide personalized investment recommendations.