The main appeal of this property is the generous monthly cash flow and high cap rate it boasts. It requires a certain kind of buyer/investor, but the numbers are strong
The property currently has 17 mobile homes and 21 RV sites generating revenue. The current rent for an RV pad is $640/month and current average rent for a mobile home is $775/month. The park is full with a waiting list and many tenants have been there for quite some time. Two of the owners live on site (each in a double wide) and there is also a rental office (single wide), so 3 mobile homes are currently not generating revenue but will be once the park is sold. There are also 20 storage spaces in the front of the property generating $50/month
With modest projections of $650/month for the RV pads, $800/month for the mobile homes and $50/month for the storage spots we get a gross annual rental income of $339,000. I have the expense ratio calculated at 65/35 which puts the net rental income at $220,350. At a $2million sale price this gives us a cap rate of 11% which is really good.
The lot the park is on is 6.53 acres and is zoned CG-1 per St Johns County. It has frontage on US-1 and rear access from Capo Island Road. One huge improvement the owners have made is adding City water and sewer to the site. This was about a $250,000 improvement done back in 2002. I have the lot valued at $1million plus the water/sewer at $250,000.
