Calmar MHC is an all age community served by public utilities, all of which are directly billed to the tenants. The property currently has 5 tenant owned homes, 5 rent to own contracts, and 5 park owned homes. Lot rents are slightly below market at an average of $275 per month. Park owned homes rent for an average of $415 above lot rent, and rent to own homes average $390 above lot rent.
This offers new ownership the ability to raise lot rents over time, while also enjoying the additional income from park owned homes. New ownership could also sell the park owned homes on rent to own contracts to lower operating costs while still benefiting from the additional income.
Recent Improvements
Current ownership has spent the last several years establishing a solid tenant base and removing problem tenants from the property. Current ownership has also extensively remodeled the park owned homes, meaning new ownership can benefit from the low amount of capital expenditures needed in the future.
Utilities and Infrastructure
Calmar MHC was developed in 1987. Water lines were replaced in approximately 2015. The property features curb stops and 100% direct billed city utilities with current ownership paying a small fee for security lighting each month.
Park Owned Homes/ RTO Details
Lot 2(POH): 1993 Mansion: 1,056 Square Feet
Lot 3(POH): 1998 Dewitt: 1,216 Square Feet
Lot 4(RTO): 1995 Skyline: 1,178 Square Feet
Lot 5(RTO): 1979 Skyline: 924 Square Feet
Lot 7 (RTO): 1996 Skyline: 1,216 Square Feet
Lot 8 (RTO): 2004 Forest: 1,056 Square Feet
Lot 12 (POH): 1993 Bonnavilla: 1,216 Square Feet
Lot 13(POH): 1999 Redman: 924 Square Feet
Lot 19(POH): 1994 Forest: 1,216 Square Feet
Lot 21 (RTO): 1997 Darby: 1,216 Square Feet
Financial Analysis
The financial analysis is based on current occupancy and expenses from 2024's profit and loss statements. Future income assumptions are based on raising lot rents to $300 in year two, with a 5% raise in year 3, and a 3% raise each year thereafter. No additional consideration was given for infill. Rent to own income is based on the current contracts that are in place and their maturity dates.
Current ownership self manages the property, and an estimated management fee was added for future projections.
Contact Broker for Additional Details
Calmar, IA
Calmar, IA is located in Winneshiek county and is home to Northeast Iowa Community College. The city has a resident population of 1,125 but is located within 15 minutes of Decorah, IA (7,600 residents) and is within 20-30 minutes of Cresco, IA (3900 residents), West Union, IA(2,500 residents), and Waukon, IA (3800 residents) all of which are large employment centers in the area.
With average home prices in Decorah currently at $350,000 the subject property offers affordable housing for residents while still allowing easy access to local employment centers and amenities.
