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re: WTF? Scotlandville Trailer Park sells for $5.9 million
Posted on 4/14/22 at 9:36 am to Earnest_P
Posted on 4/14/22 at 9:36 am to Earnest_P
quote:
Everything like this is bad news for normal people. We are clearly being slowly choked out by some evil forces of greed.
Not enough people have been made uncomfortable enough yet. Keep the majority comfortable and the greed train continues. I think they've gone too far now and too many people are going to be uncomfortable very soon, making it uncomfortable for our elites.
0
Posted on 4/14/22 at 9:45 am to RamblingNonsense
I honor your commitment and effort to put a trailer park boys spin on this thread somehow it was definitely called for
Posted on 4/14/22 at 9:50 am to goofball
Trailer parks are low cost cash cows. I’m dying to get my hands on one and there’s a moratorium on building them in most cities so supply is relatively fixed.
Posted on 4/14/22 at 9:59 am to goofball
$5.9 million? That's ridiculous. That park isn't even a member of the The International Association of Trailer Parks, Trailer Park Supervisors and Assistant Trailer Park Supervisors.
Posted on 4/14/22 at 10:04 am to Twenty 49
quote:
That's bad news for the residents.
Chances are if you're having to "rent" a trailer, you've made some bad decisions in life and are used to bad news.
Posted on 4/14/22 at 10:09 am to JumpingTheShark
quote:
Trailer parks are low cost cash cows.
We own two of them. Only major expenses are sewer systems and garbage collection.
We do only own a few homes themselves and all are on a rent to own basis.
You could make more if you own the homes as well as lots and they are easier to rent, but then you have to repair them all the time as well.
This post was edited on 4/15/22 at 7:15 am
Posted on 4/14/22 at 10:15 am to goofball
The problem with Scotlandville, is that it is full of Scots.
Posted on 4/14/22 at 10:42 am to baldona
quote:
You can't just jack the rent up immensely, no one will be able to afford it.
Um, raising the monthly land lease and forcing the lowest tenants out is exactly what these corporations are doing. Did you read the article that Twenty49 posted?
https://www.npr.org/2021/09/03/1033910731/why-are-investors-buying-up-mobile-home-parks-and-evicting-residents
Posted on 4/14/22 at 10:51 am to goofball
Im an appraiser and I appraise trailer parks all the time. How many units does it have? Does the park own the mobile homes or do the tenants? If they own the mobile homes then the rent would be higher, but the maintenance is much higher and the head aches you have to deal with are much higher. The parks that dont own the homes and only collect lot rent are low maintenance money makers. Less insurance cost, no Maintenace, etc. If they trash the mobile home, who cares. Just keep the grass cut.
The prices of mobile home parks are increasing significantly. $20,000 to $30,000 per unit is common. Obviously it depends on alot of factors.
The prices of mobile home parks are increasing significantly. $20,000 to $30,000 per unit is common. Obviously it depends on alot of factors.
Posted on 4/14/22 at 10:52 am to goofball
quote:
Scotlandville Trailer Park sells for $5.9 million
Posted on 4/14/22 at 10:57 am to Tiger Prawn
I wonder if this investment firm did any research into the area this part is in? Seems the board of the company has a fiduciary responsibility to the investors. Wonder what will happen when they realize they are in a war zone?
Posted on 4/14/22 at 11:09 am to goofball
A quick glance at Google Earth, I count around 126 homes in that park. I know I’m lowballing these numbers but if lot rent is $100 monthly, that’s an annual income of $151,200. If the park owns 1/3 of the homes and get $600 monthly after lot rent of $100, that’s an additional yearly income of $302,400.
Yearly income of $453,600 will pay back the initial investment in 13 years. Not bad if you have the capital.
Yearly income of $453,600 will pay back the initial investment in 13 years. Not bad if you have the capital.
Posted on 4/14/22 at 11:26 am to bayouteche
quote:
A quick glance at Google Earth, I count around 126 homes in that park. I know I’m lowballing these numbers but if lot rent is $100 monthly, that’s an annual income of $151,200. If the park owns 1/3 of the homes and get $600 monthly after lot rent of $100, that’s an additional yearly income of $302,400.
Yearly income of $453,600 will pay back the initial investment in 13 years. Not bad if you have the capital.
I bet they can cram way more trailers in there too.
Posted on 4/14/22 at 11:51 am to bayouteche
quote:Lot rent is probably closer to $250
lot rent of $100
Posted on 4/14/22 at 12:00 pm to goofball
At that location, there are probably some plant workers there. That is why it looks like it does. Very well kept for a park in that area.
Posted on 4/14/22 at 12:03 pm to goofball
If there's 100 trailers in there you are talking a nice annuity of say $800.00 a month each $80,000.
Minus taxes, admin, maintenance etc etc
If you go to the bank with a 80K a month cash flow they will be rubbing their hands together to help you.
Minus taxes, admin, maintenance etc etc
If you go to the bank with a 80K a month cash flow they will be rubbing their hands together to help you.
Posted on 4/14/22 at 12:29 pm to OweO
quote:
When it’s finished, the site will have a nude pool, a nude yoga stadium, a strip poker hall, and a key party cabana.
quote:
Mamou
Posted on 4/14/22 at 2:34 pm to goofball
It's probably valuable because it is the haven of a mythical creature.
Posted on 4/14/22 at 3:23 pm to TigerBlood17
quote:
Im an appraiser and I appraise trailer parks all the time. How many units does it have? Does the park own the mobile homes or do the tenants? If they own the mobile homes then the rent would be higher, but the maintenance is much higher and the head aches you have to deal with are much higher. The parks that dont own the homes and only collect lot rent are low maintenance money makers. Less insurance cost, no Maintenace, etc. If they trash the mobile home, who cares. Just keep the grass cut.
The prices of mobile home parks are increasing significantly. $20,000 to $30,000 per unit is common. Obviously it depends on alot of factors.
A quick look at Eastover Estates in Denham shows those properties are selling for under 5k. Of course it looks like a thrid world country inhabited by serial killers and methheads but i guess thats part of the charm there.
Posted on 4/14/22 at 4:36 pm to bayouteche
quote:Yeah, I don't understand the confusion in this thread. Mobile home parks are basically just another variety of multi-family (i.e. apartments).
A quick glance at Google Earth, I count around 126 homes in that park. I know I’m lowballing these numbers but if lot rent is $100 monthly, that’s an annual income of $151,200. If the park owns 1/3 of the homes and get $600 monthly after lot rent of $100, that’s an additional yearly income of $302,400.
Yearly income of $453,600 will pay back the initial investment in 13 years. Not bad if you have the capital.
5.9 for 126 pads = ~$47K/pad. Now, that number is a lot higher than it used to be, but the math still pencils.
If the residents pay $250/month site rents, that's $3K gross per year on $47K cost (unlevered). I'll bet the profit margin at this park is pretty high given the relative lack of amenities (lots of parks around the country have swimming pools, gyms, clubhouses, etc.
So the gross unlevered cash flow yield is 6.3% - the net is probably something like 4.5%. Not shooting the moon, but it's sort of where things are trading these days. (Plus they probably DO have leverage).
What I don't know is how many unoccupied pads there are, because that's potential upside if the buyer adds new residents.
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