Mobile Manor MHP
 
1st St and Dana Ave, Chappell, NE 69129
$90,000
Price
6.37 %
Cap Rate
7
Occupied Homes
7.94
GRM
11
Number of Lots
 
 
Investment Overview
  • This property consists of 11 pads located in Chappell, NE. The property offers various avenues for upside including lot rent increase, minor infill, and utility bill back. This property has seven long term tenants, offering an easy transition for new ownership. The property would be a great opportunity for a newer manufactured housing community investor or an easy addition to an experienced investor's portfolio. By billing back water and raising lot rents closer to the market rate in the short term, new ownership can more than double the current CAP Rate within the first year without the need for infill. This community offers a unique ability to quickly appreciate the property with minimal investment.
Upside Opportunity
  • This property offers new ownership several options to enhance the performance of the asset and to quickly force appreciation. Currently the owners are not billing back utilities to their tenants, which accounts for 9% of current expenses. Current lot rents are well below market rent. Increasing lot rents and billing back utilities would significantly decrease the property expense ratios while raising NOI in the short term. Based on occupancy in similar properties in the area, there is a strong demand for affordable housing in Chappell, NE.
Financial Analysis
  • All numbers listed in the financial analysis are actuals based on rent collection and expense records provided by current ownership. Year two financials are based on raising lot rents to $200 across the board, and filling the eighth unit on site. Years 3-10 were based on a 3% lot rent raise across the board, which is likely below levels that could be attained by future ownership. Infill opportunity was not taken into consideration for future income, offering further potential for a new owner wishing to infill the property.
Utilities
  • This property is served by all public utilities, and currently ownership pays for water which has not been individually metered. This offers new ownership the ability to bill back or add water meters to cut future operating costs. The property is also served by city streets, eliminating the need for owners to provide road maintenance and snow removal.
Additional Information
  • Current ownership exchanges mowing for lot rent for the occupants of lot 5. Contact Broker for Additional Details
Additional Mobile Home
  • Currently, there is one abandoned tenant owned home on site. New ownership could sell this home to a new tenant to increase occupancy and income. Contact Broker for Additional Details
Additional MHC Availabe
  • This property can be purchased with an additional property in Central Kansas. The additional community features 69 pads (24 RV and 45 Mobile). The property also offers expansion availability as it is currently zone for 80 lots. Contact Broker for additional details.
Chappell, NE
  • Chappell is a village on the Nebraska/Colorado border and is the county seat of Deuel County, NE. Chappell has a population of 850 residents, and Deuel County has a total population of 1,850. Employers in the area are mainly centered around agriculture, health care, and government agencies. Chappell, NE is located just off of I-80, and is 45 minutes west of Ogallala, NE.
Subject Property
  • The subject property is located on the southern edge of Chappell, and is less than 4 blocks away from the local grocery store, bank, and city park. Offering residents a convenient housing location within walking distance of necessary amenities.
FOR MORE DETAILS CONTACT
Jason Bergan
Broker
(563) 880-9679
jbergan@c21sre.com
Noah Casterton
Broker
(715) 557-0651
noah@c21sre.com
Lic: S70126000 (IA), 40835623 (MN), and 111468-94 (WI)
Drew Vlazny
Broker
(563) 880-6200
drew@c21sre.com
Lic: 71703