17551 Mountain View Rd
Desert Hot Springs, CA 92241
Bougainvillea Estates · Multifamily Property For Sale · 5,000 SF

Please contact Broker for a detailed Offering Memorandum. Please be respectful of the current operation when you drive the park! The onsite staff and residents do not know the community is for sale! Please let the broker know if you are going to view the park so we can address any of your questions prior to your drive through visit. Bougainvillea Estates is an 88-site MH & RV community permitted for 88 permanent MH/RV sites and 24 RV storage lots. The park is located in unincorporated Desert Hot Springs and is accessible from either Indian Canyon Drive or Palm Drive that both exit north off of Interstate 10. The park is on Mountain View Road, south of Dillon Road. Bougainvillea Estates is a stable mobile home park investment with incubation and operational upside. The lease up of the current 6 vacant sites can add an additional $2,525 per month of site rent to the current income. Additionally, the 24 RV storage lots can be opened to the public, but are not currently being rented. There is $1,200 per month of potential storage revenue once the storage operation is up and running. The park is subject to the County of Riverside Rent Stabilization Ordinance, but has vacancy decontrol on turnover. Most of the site lease residents are on long term leases (five years or more). There are only five (5) residents currently on rent control. The POH renters are on month to month agreements and the MH & RV site rents range from a low of $276 to a high of $485. The community is well managed and maintained. The collections are stable and the park has appeal to new residents. The park is priced at $3,500,000 ($39,773 per site) at a cap rate of 7.57% with a 49.67% ($2,970 per site) expense load. The POH portfolio (23 homes) is included in the purchase price and has a gross income of $37,740, annually. The capitalization rate includes both the revenue from the real and personal property. Bougainvillea Estates offers a stable cash flow and the ability to increase revenue. The park is a good investment opportunity for the emerging or seasoned operator. The annual cash flow of $109,910 offers a stable current yield of 8.97% with the additional upside of $30,300 at 100% site and home occupancy and $14,400 with 100% occupancy of the RV storage.