Mobile Home Park in the St. Louis, MO MSA:

 

In June 2017, the Keel Team and investment partners purchased a 67 lot mobile home park outside of St. Louis, MO.  Through improvement initiatives such as: filling vacant pads, removing run down homes, correcting utility bill back equations so tenant paid recapture was increased, modest lot rent increases, and others, we were able to improve the park operations, increase NOI, and achieve a significant value increase.  The financial results of these efforts are summarized below:  

 

Original acquisition price: $1,340,000 (June 30, 2017)

 

Equity: $400,000 initial cash investment 

Debt: Recourse debt for both partners

 

December 2018: first cash flow distribution of $85,000

 

Cash Out Refinancing Event

April 18, 2019

 

Investors received $783,917.17 from the refinancing event. Plus an additional cash flow excess distribution of $65,000 was paid to investors at this time. The new debt is recourse.
 

Summary:

$85,000 cash flow distribution

$783,917.17 Cash out Refinancing Distribution

$65,000 cash flow distribution

$933,917.17 Total Distributions

($400,000) Initial Equity Investment

$533,917.17 Total Return on Capital

 

Timeframe:

21.6 months = 1.8 years

 

ROI:

74.15% annualized cash on cash ROI 

 

​Future potential ROI opportunities:

• Infinite returns since all of the original equity investment has been returned, yet we still own the MHP

• Additional $112,000 earn out loan available 12 months after refi (possible additional future return per refi loan)

• Forced savings of approximately $520,000 due to the equity remaining in the property after the April 2019 refinancing event

• Additional potential equity appreciation as the MHP continues to increase in value