RundleCRE Mobile Home Park Brokers We are pleased to present 10721 Westward Ho! Mobile Home Park 26 Space MHP For Sale 710 Della Street, Benton City, WA 99320 $800,000 $30,769 per space 9.23%CAP Kimberry@RundleCRE.com Kim Berry Cell 503-807-2568 5319 SW Westgate Drive, Suite 232, Portland, OR 97221 Phone: 503-980-3512 FAX 360-935-3512 11820 Northup Way, Suite E200, Bellevue, WA 98005 WWW.RundleCRE.com
RundleCRE Mobile Home Park Brokers Mobile Home Park Details: This MHP is in need of some strong management/ownership and some home improvements. The park is on City water and Sewer and has a separate irrigation system for summer watering. The new owner needs to have the willpower and management skills to enforce the rules and improve the maintenance of the park. The homes are old but definitely able to be renovated and cleaned up to improve the overall tenancy and appearance of the park. The vacancy is due to lack of trying to rent the spaces, otherwise the other parks in the area seem full and this should be full. The vacancy rate that is included in the numbers below is due to the fact that one RV owner has recently been hospitalized and is not currently paying rent. Homes in the park There are currently: 21 Single Wide trailers One Rented out, one park owned and vacant/in need of work 1 Double Wide Trailer Park owned and rented out 2 Permanent RV s 2 Vacant Spaces Cinderblock Building; Needs tremendous work to be useable. Roof leaking and roof joists rotted/sagging. Quality of the homes: The quality of the homes vary from a newer double wide to older single wides that need work. All the homes are in good enough shape to be renovated and improved. The new owner should start with the renovation of the vacant park owned home (Space 21) and renovate it to set a new precedence for the park. The tenant owned homes could use new paint and some cleaning up. It seems that the roofs are all in relatively good shape. Roads: The road in the middle of the park is gravel and there are some potholes. This actually keeps the speeding down but filling them is obviously an option City Sewer and Water: The park is connected to city water and city sewer. Electric Meters: All meters have 200 Amp service, other than one, which has 100 amp service. However, this is only from my observation and checking the meters and MUST be confirmed by the buyer. Electric service is all underground. There are 2 overhead lights that the park maintains. Phone: 503-980-3512 Kim Berry Cell: 503-807-2568 WWW. RundleCRE.com
Your financial future is the most important part of our business 26 Space MHP 710 Della Street, Benton City, WA 99320 Management: There is one free space rent included in the Income and Expense worksheet that would cover the cost of an onsite Eyes and Ears of the park. However, at this point, the person who was in this roll is much too old and will start paying rent in May, 2017 so someone new will have to be put in this position. The current owner lives close to the park so there is no onsite management. It would benefit the park to have an onsite Eyes and Ears of the park and to find local construction company, plumber, electrician to do any work necessary. Upswing: There is obvious upswing by completing the following: Renovating the one vacant single wide home and selling it on contract (or giving it to a needy and capable tenant to renovate over a period of 3-6 months then giving them the house and they start paying space rent. This eliminates the need for the park owner to do it. I have done this with great success many times. It is a win-win for the tenant and the park. The 2 vacant spaces should be filled with used Mobile Homes, or temporarily with permanent RV s. Many people live in their RV s on a permanent basis. The tenant would have to get an electric account with the utility company. By filling these 3 spaces the additional income is $1,170 per month, or $14,040 per year with minimal continued expenses as the only additional charge would be added water consumption. Additionally, the 1 vacant space that is the Vacancy Rate and taken out of the Current Rent roll of $115,980 is actually occupied by one of the 2 RV s. This tenant was paying rent but now has cancer and not doing well so not paying rent. This is one more space to fill, adding another $4,680, for a total additional income of $18,720!! Without raising rents! Additionally, if one is inclined to do some real construction, the cinderblock building used to be a duplex and may be able to be rebuilt into a duplex again. The rent on each space would be approximately $600 for a total of $1,200 additional income. The expense of completing this rebuild is unknown and depends on one s own ability and quality of the finished spaces Zoning: The property is zoned R-3M: High Density Manufactured Home Park. Online Zoning Map: http://www.ci.benton-city.wa.us/docview.aspx?docid=17812 Acres: The park sits on 4.03 acres. A survey from 1992 of the property is available. The land use map on the City website indicates that the site is also Commercially zoned: http://www.ci.benton-city.wa.us/docview.aspx?docid=17810 Age of Park: The park was most likely built somewhere around 1970 based on the fact that the homes are all built from 1970 1985 (one house seems to be a 1962 home as per the Assessor s website). Financing: The most logical source of financing is a local bank or credit union. There are a number of banks in western Washington that would be interested in financing this park. The interest rate would most likely range from 4.5-5% Phone: 503-980-3512 Kim Berry Cell: 503-807-2568 WWW. RundleCRE.com
Your financial future is the most important part of our business 26 Space MHP 710 Della Street, Benton City, WA 99320 Income and Expenses: Current Rent Roll: $115,980 Actual RR Vacancy Rate 1 space: $ 4,320 Explained in Upswing Current Income $111,660 Expenses: Taxes $ 5,945 Garbage $ Tenants Pay Electric $ 1,200 Onsite Helper $ 4,320 Free rent Irrigation $ 1,062 Insurance $ 1,050 Maintenance $ 4,989 Sewer $ 8,450 Flat fee for 26 hookups Water (Average) $10,788 Total $37,804 NOI $73,855 Expense Ratio: 33.85% Park Maintenance and clean up The park tenants have recently been told that they need to clean up their yards and the response has been tremendous. There is always a need for a park to provide a dumpster once a year because most tenants do not have a truck to take larger items to the dump. A dumpster is being provided to the tenants in May to help them accomplish as much clean up as possible. For the most part, there are only a few homes that are not in compliance with keeping their space clean and free of debris. These tenants are working on cleaning up. Giving tenants free paint for the exteriors of their homes is the number one way a park owner can improve a MHP! METRO paint is $85 for a 5 gallon bucket of recycled paint. I always buy a paint sprayer for all my MHPs and the tenants can get free paint and use the sprayer if they are current on rent and good tenants. This works miracles and one by one every house in the park is painted and the park is tremendously improved for a very small investment. Pride of ownership increases when the exterior of the home is spiffed up and tenants start to keep everything in better shape.. Phone: 503-980-3512 425-996-0602 WWW. RundleCRE.com
Your financial future is the most important part of our business Phone: 503-980-3512 425-996-0602 WWW. RundleCRE.com
Mobile Home Park Brokers What past clients have said: I wanted to follow up on the Bay Air MHP P&SA and Counter Offer. Your due diligence was very much appreciated. I have looked at many properties over the years and have never witnessed the efforts and thoroughness you exhibited. Your information was excellent and you passed along the 'not so good' as well as good information with honest comments. Most unusual, and again, appreciated. W.W. Most brokers who simply put the buyer and seller together but you were involved in every aspect. Even after we closed on the transaction you were still working to make sure everything was working well. You are honest as well. You certainly kept this transaction together and without you it would have fallen apart. Thank you for all your hard work M &D W A repeat Client Kim, the reason that I am buying this park is that your hard work convinced me that it was worth it. Without your hard work I would have not bought it. This was a hard one. Good Work! J T. A repeat client. We recently bought a mobile home park from one of Kim s clients. Kim did an outstanding job gathering the facts and resolving a difficult sewer problem. In my twenty nine years in the mobile home park business I have never seen such dedication and effort. By the time it closed, Kim new more about the park than the owner R.D. Thank you for all your continued work on the transaction. We usually don t get this much service from Brokers. You were instrumental in gathering due diligence and making sure we knew what was going on with the property. Thank you. L & E E Repeat Clients Thank you, Kim. There were times when I thought this was the end and the transaction would fall apart but you really did what you said you would and your cool head and hard work keep it together. Thanks for all your hard work. L.O. Hi Kim, You have certainly been busy with the work at Frontier Mobile Village. I am pleased with the work that is getting done and of course with the outcome.wow! Great job! Thank you for your great service. C. D. We work hard for every buyer and seller to insure a successful transaction 5319 SW Westgate Drive, Suite 232, Portland, OR 97221 Phone: 503-980-3512 FAX 360-935-3512 11820 Northup Way, Suite E200, Bellevue, WA 98005 Phone: 425-996-0602 WWW.RundleCRE.com