Mobile Home Community in the Angola, IN MSA

In July 2020, the Keel Team and investment partners purchased a 57 lot mobile home park outside of Angola, IN for $760,000.  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: $760,000 (July 17, 2020)

Equity: $600,000.00 initial cash investment from partners

Debt: Recourse debt for both partners

Pro-Rata Distributions Paid Quarterly, Starting in Month 6:

• January 2021: $24,910.00

• April 2021: $12,455.00

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 Total Pro-Rata Distributions Paid to Investors: $37,365.00

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• March 2022 refinance event cash out: $1,249,761.36

The new debt is non-recourse, Fannie Mae agency debt.

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 Summary:

$37,365.00 Pro-Rata Distributions

$1,249,761.36 Cash out Refinancing Distribution

$1,287,126.36 Total Distributions

($600,000.00) Initial Equity Investment

$687,126.36 Total Return on Capital

Timeframe:

20 months = 1.8 years

ROI:

63.62% annualized cash on cash ROI (pls confirm)

​Future potential ROI opportunities:

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

• Additional supplemental loan available 12 months after refi (possible additional future return per refinance loan terms)

• Forced savings of approximately $989,000 due to the equity remaining in the property after the March 2022 refinancing event

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