Soon to be re-branded under “Freedom MHP” when we close on this this park in late December 2021. Public utilities, 24 tenants (all TOH but 1) at $350 lot rent, 34 vacant POH, 8 vacant lots, and 2 vacant apartment units. Business plan calls for $80k in capex, a $1mm project cost, and a refinance month 24 at a $1.6mm valuation at an 8% cap and $130k NOI. No infill required. Just light renovations to sell POHs on a 12month RTO.
Investment Overview:
$400k in capital required.
($50k outstanding).
$50k investment = 11% Equity / 5% after refinance.
26% return + Principal back at refi within 24m.
( 13% annualized return )
7% interest Year 1 (paid out monthly).
19% Interest Year 2 (paid out monthly).
+ Up to an additional $20k in refi profits.
(20% Targeted IRR to investors).
5% Equity after refi = $5k+/y salary
Up to $70k in Sale Profits if we sell after Y5.