In April 2020, the Keel Team and investment partners purchased a 60 lot mobile home park in the Ft. Wayne, Indiana MSA for $672,000. 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: $675,000 (April 30, 2020)

 

Equity: $525,000.00 initial cash investment from partners

Debt: Recourse debt for both partners

 

10% Preferred Distributions Paid Quarterly, Starting in Month 13:

 

• May 2021: $13,125.00

• August 2021: $13,125.00

• November 2021: $13,125.00

• February 2022: $13,125.00

• March 2022: $6,708.33

​

 Total Preferred Distributions Paid to Investors: $59,208.33

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Cash Out Refinancing Event

March 16, 2022

 

Investors received $1,177,742.86 from the refinancing event.

 

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

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 Summary:

 

$59,208.33 Preferred Distributions

 $1,177,742.86 Cash out Refinancing Distribution

$1,236,951.19 Total Distributions

($525,000.00) Initial Equity Investment

$711,951.19 Total Return on Capital

 

Timeframe:

23 months = 1.9 years

 

ROI:

71.37% 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 supplemental loan available 12 months after refinance closing (possible additional future return per refinance loan terms)

• Forced savings of approximately $1,171,000 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