Alfredo Barrenechea alfredo@go -absolute.net 505-4 01-0135 Mobile Home Park in Picturesque Taos, NM for Sale Sale Price: $1,375,000 Cap Rate: 7.75% NOI: $106,680 # Units: 32 Land Size: +/- 3.18 Acres Occupancy: 94% Features: 32 Unit Park Stable, Long Term Tenants Low Maintenance Asset Estimated Cash on Cash Return: 10.00% Excellent Location Desirable Taos, NM Market Below Market Rents The information contained herein is believed to be reliable. While we do not doubt the accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness.
Investment Description and Trade Area Trade Area Demographics Radius 1 Mile 3 Mile 5 Mile Population (2016 Estimate) 3,410 13,674 18,521 Avg HH Income (2016 est) $40,241 $36,039 $39,753 Absolute Investment Realty is pleased to present this rare opportunity to acquire a 32 unit, fully operating mobile home park in one of the most desirable trade areas in the southwestern, US. Located in the heart of Taos, NM, this cash-flowing investment opportunity is low maintenance with a long history of stable tenants. The property is easily accessible in one of the most desirable areas of the town, just off Taos main drag, Paseo del Pueblo Sur (State Highway 68). It is also conveniently located near all of Taos primary services and shopping, including Walmart, which is directly across the street. The property has minimal landlord responsibility, low maintenance costs and no amenities. The property also has value as a commercial site and could be redeveloped in the future: The land value alone is justified by the purchase price ($9.92/SF for 3.18 acres). As a fringe benefit, new owner can enjoy a vacation while visiting this asset: Taos is a world famous destination for tourists, artists, and celebrities and features some of the worlds best dining and sight-seeing. The buyer of this property has the opportunity to significantly increase NOI by increasing rates to market and billing back operating expenses. With these simple changes, pro-forma cash on cash return could be nearly 14% (see pro-forma included in the following page.
Site Close Up Investment Highlights Low Maintenance & Overhead Below Market Rents Desirable Location Taos, NM Priced at Land Value Stable, Long Term Tenants SITE SITE Taos Java Sun God s Lodge Story Teller Cinema
Asset Details & Financial Summary Asset Details Property Address:, Property Type: Property Size: Unit Types: Zoning: Access: Mobile Home Park +/- 3.18 Acres. : 1.36 Acres, Reed Street: 1.82 Acres Single Wide C2 (), C1 (Reed Street) Excellent access Via Camino de la Merced & Reed Street & Dea Lane with private drives. Asset Financial Summary Sale Price: $1,375,000 NOI: $106,680 Cap Rate: 7.75% Estimated Cash on Cash Return*: 10% Number of Units: 32 Occupancy: 94% Visiblity: Good visibility. Visible from HWY 68 Price / Unit $42,969 Signage: Highest and Best Use: None. Potential for good signage depending on zoning restrictions Mobile Home Park, Multi-Family or Commercial Land Value ($/SF) $9.93 * Calculated using market rate financing assumptions Market Demand: Strong investor demand for low-income housing, including mobile home parks. Historically, Taos has low vacancy rates and few options for low income renters. Trade Area Description & Boundaries: The trade area consists of the town of Taos, NM and the surrounding rural areas of Northern New Meixco..
A lfredo B arrenechea alfredo@go -absolute.net 505-401-0135 Income & Expenses Estimated Cash on Cash Return: 10.00% B a s e d o n m a r k e t f i n a n c i n g t e r m s & c o n d i t i o n s 2016 Acutal & 2017 Estimated Income & Expenses Income Unit Units Per Unit/Mo Per Unit/Yr Total per Month Total Per Year Mobile Home Space 32 $365.00 $4,380.00 $11,680.00 $140,160.00 Vacancy Factor Mobile Home Space 2 $365.00 $4,380.00 $730.00 $8,760.00 Adjusted Gross Income 30 $365.00 $4,380.00 $10,950.00 $131,400.00 Expenses Per Unit/Mo Per Unit/Yr Total Per Month Total Per Year Real Estate Taxes $11.72 $140.63 $375.00 $4,500.00 Insurance $3.13 $37.50 $100.00 $1,200.00 Well Management $7.81 $93.75 $250.00 $3,000.00 Sewer & Refuse $26.56 $318.75 $850.00 $10,200.00 Common Area Electricity $3.75 $45.00 $120.00 $1,440.00 Management $11.41 $136.88 $365.00 $4,380.00 Total Expenses $64.38 $772.50 $2,060.00 $24,720.00 NOI $300.63 $3,607.50 $8,890.00 $106,680.00 This financial analysis is based on information the broker believes to accurately represent the financial performance of the property. However, neither the broker nor owner can guarantee the future financial performance of this asset and make no representations as such.
A lfredo B arrenechea alfredo@go -absolute.net 505-401-0135 Pro Forma Financials Estimated Potential Cash on Cash Return: 14% Pro Forma Rent Roll Income Unit Units Per Unit/Mo Per Unit/Yr Total per Mo Total Per Year Mobile Home Space 32 $400.00 $4,800.00 $12,800.00 $153,600.00 Expense Recapture* 32 $50.00 $600.00 $1,600.00 $19,200.00 $450.00 $5,400.00 $14,400.00 $172,800.00 Vacancy Factor Mobile Home Space 2 $365.00 $4,380.00 $730.00 $8,760.00 Adjusted Gross Income 30 $400.00 $4,800.00 $12,070.00 $144,840.00 Expenses Per Unit/Mo Per Unit/Yr Total Per Month Total Per Year Real Estate Taxes $11.72 $140.63 $375.00 $4,500.00 Insurance $3.13 $37.50 $100.00 $1,200.00 Well Management $7.81 $93.75 $250.00 $3,000.00 Sewer & Refuse $26.56 $318.75 $850.00 $10,200.00 Common Area Electricity $3.75 $45.00 $120.00 $1,440.00 Management $12.50 $150.00 $400.00 $4,800.00 Total Expenses $65.47 $785.63 $2,095.00 $25,140.00 NOI $334.53 $4,014.38 $9,975.00 $119,700.00 This Pro Forma Financial Analysis represents potential upside that might be realized by a buyer of the property. Rents have not been raised since 2013, which gives the buyer the opportunity to bring rents to market rates. Additionally, the property does not presently charge back for any operating expenses, which may provide the buyer with another potential source of income. Financing Assumptions Purchase Price $1,375,000 Down Payment $343,750 25.00% Loan Balance $1,031,250 Interest Rate 5.00% Amortization period 25Years Payment [mo, yr] $6,029 $72,343 Cash Flow $3,946 $47,357 Cash on Cash Return 13.78% * Recpture Well, Sewer, Refuse, Common Electricity, Management Expenses This financial analysis is intended only to be utilized as an example and is not intended to provide actual financial performance of the property marketed herein and neither the owner nor broker make any representations as such.
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Taos, New Mexico Location Taos MSA SITE SITE New Mexico
Taos, New Mexico MSA Taos is located along the border of the world famous Rio Grande River gorge and the scenic mountains of the Carson National forest in Northern New Mexico between the Colorado border and Espanola. Taos is famous as a destination for artists, tourists, skiers, and adventure seekers. This bustling Northern New Mexico community is also home to movie stars and celebrities such as Julie Roberts. Taos thrives on its tourist destinations such as Taos Pueblo, the Rio Grande River Gorge, and the world renown Taos Ski Valley. Taos Pueblo is a Unesco World Heritage site, has been occupied for nearly a millennium, and is considered to be one of the of the oldest continuously inhabited communities in the United States. Households by Income Taos is the county seat of Taos county and the primary destination for goods and services for communities north of Espanola/Santa Fe, NM. In addition to high-end tourist shopping and dining, the town has major retailers such as Walmart, grocers such as Smith s and Albertsons, and all primary fast food restaurants such as Wendy s, McDonald s and Taco Bell.