* * * Mascoutah, IL MHP Bundle * * *

(3) Mobile Home Parks | (22) Total Lots.

STABILIZED NOI: $83,000

PROJECT COST: $455,000

STABILIZED VALUE: $755,000

Mascoutah a promising market with an average home value of $180,000 increasing about 4% annually. In a town with just under 10,000 people, there are new builds going up, $300k+ housing developments, and median rents are over $1,000! Reason being is that Mascoutah is a clean, quiet, and safe community to live in outside of St. Louis (only a 30 minute commute). Lastly, the school district is rated #40 out of over 700 in the state of Illinois!

Mascoutah Meadows MHP

(Mascoutah, Illinois)

11 pad value-add mobile home park acquired in Fall of 2019 for $160,000 with 8 tenants and 1 POH (which we immediately converted to a rent-to-own).

Highly underutilized, residents were paying a mere $150 lot rent (no increases had been performed in over 30 years). All residents have been abiding by the $25 quarterly rent increases we implemented into the new leases capping at market LR of $350.

We performed 1 week of on-site due diligence prior to closing, including hiring a full-time site manager with 9 years of experience managing local parks.

Business plan projects for full occupancy by mid 2021 and top-market lot rent ($350) by August 2022, grossing $4,800 monthly revenue and netting $3,000.

STABILIZED NOI: $36,000

PROJECT COST: $190,000

STABILIZED VALUE: $360,000

Through due-diligence we determined that all of the tenants were well-screened, timely on rent, and for the most part well-maintained (those who had junk in their yards or encroaching fences responded well to the notices we served). We met tenants face-to-face and listened to suggestions and concerns. Built one resident a dog kennel to prevent his dog from continuing to wander onto other peoples yards.

We ended up having to perform 1 eviction of a tenant that turned out to be on a sublease with the resident next door. We bought the home from the resident/landlord. The tenant living in the home had several vicious dogs and refused to fill out pet waivers or provide vaccine and license documentation. Fortunately, the residents peacefully forfeited the home prior to eviction. We remodeled the unit (pictured below) and quickly occupied it at $750. Implemented branding and signage.

Maple Grove Estates

(Mascoutah, Illinois)

Distressed 9 lot park acquired in March of 2020 for $35,000 with 1 tenant (living in foul conditions whom we helped relocate). Currently undergoing $175,000 renovation through early 2021, including new water meters, water lines, fencing, and full renovations on each unit. Currently housing our incredibly hard-working site manager free of charge. Will be entirely park-owned homes renting for $750/M+, generating $4,500/m once stabilized in Spring 2021.

Site Manager provides full-time grounds keeping, security, project management, and coordination with Asset Management on all 3 parks. Implemented branding, signage, fencing, and communal parking. Will be netting $2,900 at full occupancy in Spring 2021.

STABILIZED NOI: $35,000

PROJECT COST: $210,000

STABILIZED VALUE: $275,000

Bernard Village

(Mascoutah, Illinois)

Value-add 4 lot park acquired in Jan 2020 for $37,500 with lots occupied (all resident-owned). Increased lot rents from $200 to $250 plus $25 increases quarterly, capping at $350 market LR. Implemented branding and signange.

Plan calls for full occupancy and stabilization by mid 2021 grossing $1400/M (infill by moving in 1 resident-owned home).

Plan calls for light communal value-add in the way of gravel, fencing, and landscaping to bring the real estate to it’s maximum value.

STABILIZED NOI: $12,000

PROJECT COST: $55,000

STABILIZED VALUE: $120,000