High Meadows MHC is located about 35 min from the heart of Pittsburgh with significant upside in both rent and infill.
High Meadows MHC consists of 71 MH Lots, 1 single family home, and a 3 bay garage with 36 tenant owned homes (TOH), 14 rented parked owned homes (POH), 3 rent to own homes (RTO), 1 vacant POH, 4 abandoned homes, and 13 vacant lots. 1 RTO matures in January, 2022, and 2 RTO’s mature in early 2024. Average rents are $288 lot rent, $286 home rent, and $283 RTO payment. The park is NOT in a flood zone or opportunity zone.
The property is serviced by public water that’s billed back to tenants via submeters, a waste water treatment plant (WWTP) that is billed back to tenants at a flat rate, and direct billed electricity. Propane is also directly billed to tenants. The WWTP was replaced 15 years ago. There is additional income from separate residential properties using the WWTP and being billed. Trash service is provided by 4 dumpsters, paid for by the park and included in rent. The roads are paved but in below average condition.
The pricing represents a 7.00% cap rate using lot rent income on actuals, using a 51.1% expense ratio. We are asking investors to submit offers at or above $1,540,000. This community should qualify for conventional recourse bank financing from a local bank. The debt used in our underwriting is a current quote. By increasing rent $32 and increasing occupancy by 6.9%, an investors cash on cash return increases to 23.08%. Our underwriting suggests that once the park is 100% occupied and at $350 lot rents, an investor can exit at a 7% cap rate for $3,281,000.
Please read special notice about gas rights: High Meadows MHC Special Notice
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