In March 2018, the Keel Team and investment partners purchased a 61 lot mobile home park in Jefferson county, Pennsylvania.  Through improvement initiatives such as: filling vacant pads, removing run down homes, converting utility payment from park paid to tenant paid, 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: $886,750 (March 2, 2018)

 

Equity: $284,937 initial cash investment from partners
Debt: Recourse debt for both partners

10% Preferred Distributions Paid Monthly, Starting in Month 4:

• July 2018: $2,374

• August 2018: $2,374

• September 2018: $2,374

• October 2018: $2,374

• November 2018: $2,374

• December 2018: $2,374

• January 2019: $2,3747

• February 2019: $2,374

• March 2019: $2,374

• April 2019: $2,374

• May 2019: $2,374

• June 2019: $2,374

• July 2019: $2,374

• August 2019: $2,374

• September 2019: $2,374

 

Total Preferred Distributions Paid to Investors: $35,610

 

Cash Out Refinancing Event

September 5, 2019

Investors received $462,729 from the refinancing event.

 

The new debt is non-recourse, agency debt.

 

Summary:
 

$35,610 Preferred Distributions

$462,729 Cash out Refinancing Distribution

$498,339 Total Distributions
($284,937) Initial Equity Investment
$213,402 Total Return on Capital

Timeframe:
18 months = 1.5 years

ROI:

49.93% 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 earn out loan available 12 months after refi (possible additional future return per refi loan)

• Forced savings of approximately $942,500 due to the equity remaining in the property after the September 2019 refinancing event

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