Mobile Home Park outside of Youngstown, OH:

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In May 2018, the Keel Team purchased a 80 lot mobile home park outside of Youngstown, Ohio. Through improvement initiatives such as: filling vacant pads, correcting maintenance procedures on utility infrastructure, removing run down homes, modest lot rent increases, repairing roads, installing new signage and fencing, hiring new management, 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: $660,000 (May 7, 2018)

 

Equity: $375,174.80

Debt: Recourse for all equity partners

 

No Preferred Return paid, all excess cash flow was reinvested

 

Cash Out Refinancing Event: March 26, 2020

 

Investors received $1,384,247.41 from the refinance event

The new debt is recourse 

 

Summary: 

 

$1,384,247.41 Cash Out Refinancing Event Distribution

($375,174.80) Initial Equity Investment

$1,009,072.61 Total Return on Capital 

 

Timeframe: 

23 months (approx. 2 years)

 

ROI:

134.48% 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 mobile home park property

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

• Forced savings of approximately $600,000 due to the equity remaining in the property after the March 2020 refinancing event

• Additional potential equity appreciation as the mobile home park continues to increase in value