16-Pad Mobile Home Park With 97% ROI

Investor Spotlight

Issue #8: 

Featuring Sam B. – Virginia

Wholesaling & Flipping to cash flow

Sam Barr is a man of all trades. He flips, he wholesales, and he buys and holds cash flow. The only reason why he wholesales/flips, is so he can buy more multi-family units, mobile home parks, and self-storage. 

In this particular deal, we’ll talk about his 16 pad mobile home park; which he found off-market like most of his deals. 

Here’s a little info about Sam:

He has 5 employees devoted entirely to property management. For acquisition, he’s solo. He’s been flipping for a number of years now. 90% of his deals he finds off-market using direct mail. 

The Deal

The entire package came with: 

  • 16-pad mobile home park
  • 2 empty lots
  • 30×40 metal building (for storage/maintaince)
  • 1 old single-family house
  • 8 Mobile homes (1990’s), owned & rented by the park
  • Each home worth an average of $20,000
  • Gravel roads and utilities paid by the tenants

The seller:

Tired landlord

Value-add strategy: 

  • Converted the 2 extra lots into usable MH pads
  • Conducted survey which added 2 extra MH lots. 
  • Increased lots from 16 to 20 spaces
  • Paved the gravel roads
  • Filled empty MH lots with new mobile homes
  • New evaluation a year later: $400,000

Cash-out strategy

  • Sold the single-family for $32,000. 
  • Sold two mobile home for total of $35,000
  • Refinanced and cashed-out $110,000
  • $$ left in the deal: $53,000

The Numbers

  • Purchase price: $230,000
  • Gross Rents at time of purchase: $3,050
  • Gross rents after value add: $4,300
  • New stabilized value: $600,000
  • Purchase vehicle: cash
  • Marketing ROI: 3,800%
  • Equity after value-add: $547,000
  • 20-year cash flow yield: 97%

The Marketing

  • The list: All mobile home parks with 15 pads or more, within 2 hour radius of his residence
  • Mailing piece: BPM Template Letter

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