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Tenant and Park Owned Homes

This property is comprised of a mix of tenant and park owned homes. The current owners have been able to keep maintenance costs low, while collecting park owned home rent for an improved NOI.

Infill Opportunity

This property consists of 14 total lots, 6 of which are occupied. A new owner would have the ability to bring in 8 new homes at $300/month in lot rent, which would increase the gross income by $2,400/month or $28,800 annually.

Direct Bill Utilities

All utilities are directly billed to the tenants (water/sewer, trash, electric, and gas). The owners do not have to submeter any utilities and are not responsible costs associated with utility usage.
The current owners are responsible for a $75/month ($25 per vacant unit) for the meter hook-ups to each vacant unit on the property. This is a cost that would be taken off the expense report after homes are

City Maintained Roads

The roads surrounding the park are all maintained by the city. The current owners do not have to pay for road repairs or snow removal for the property.

On-Site Management

The current tenant in Lot 2 serves as the park manager in exchange for a $300/month rent credit.

Vacant Park Owned Homes

There are 3 vacant homes on the park that either need to be rehabilitated prior to renting to a new tenant or removed from the park. Those homes are located in lots 8, 9, and 12. See the lot outline map in previous pages for their locations.

Cash Flow Assumptions

Future income assumes the infill of two tenant-owned homes per year for 4 years until fully occupied, an increased park-owned home rent of 3% year over year starting in Year 2, and a 3% lot rent increase after the park becomes fully occupied at the end of Year 5.
Future expenses assume an increase of 3% across all current expenses except for Maintenance and Repairs. Maintenance and Repairs assume an increase of 5% year over year.

Donnellson, Iowa

Donnellson, IA is located in the southeast corner of the state in Lee County.
It is home to about 920 people. The population's median age is 35 years old and its median household income is about $52,000/year.
The average commute time for Donnellson residents is about 25 minutes. Donnellson is a commuter town in which many residents travel to nearby Mt. Pleasant, Fort Madison, or Keokuk for work.
The primary occupations by industry are Healthcare and Social Assistance, Manufacturing, and Retail Trade.
Some of the largest employers in the region include Dupont Chemical, Siemens Gamasa, Henniges Automotive, Conagra Food Processing, Scotts Miracle-Gro, and Merschman Seeds.