Shady Bayou Manufactured Home Park Bear Bayou Channelview, Texas

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1 Shady Bayou Manufactured Home Park Bear Bayou Channelview, Texas Offered at $1,595,000 Neat & clean mobile home park just east of Houston! 84 pads, 1 vacant City water City sewer Paved roads High historical occupancy GRM is % Cap Rate Only $18,988 per pad No park owned rental homes Randy Smith, Principal Broker Phone Mobile randysmith@westernequities.com All information, while it is believed to be accurate, is not warranted. The buyer must verify all information independently, and is urged to consult qualified investment advisors. Here is your chance to buy a solid manufactured home park with upside potential! Very high historic occupancy; it's a coupon clipper. EZ to manage for absentee owners. Close in E. Houston location. Note: One seller has valid R.E. license

2 Shady Bayou Mobile Home Park Bear Bayou Channelview, Texas Executive Summary A well maintained, high occupancy park Please don t disturb tenants or managers! Asking Price: $ 1,595,000 Financing: A new loan is preferable, as the existing loan is not attractive. We have a lending source that has already been provided with the park financials and is ready to make a new loan of up to 70% LTV, 5% interest rate, 25 year amortization, 7 year call. Income/Expenses: Estimated 2013 gross income is $ 256,444 Less 5% vacancy (actual is less) $ 11,166 Estimated 2013 expenses are $ 92,005 Net Operating Income $ 153,273 The park consists of 84 mobile home pads, of which one is currently vacant. There are no park owned rental homes. Cap Rate: Disclosure: Property Description: Current proforma cap rate is 9.61 % for the park only (without the rental home). Current rent on the pads will be $215 per month, with an additional $10.00 flat fee for trash removal service. In addition, the tenants are billed back for water expense. One of the principals in the park ownership has a valid real estate license, and is acting as transactional broker. Shady Bayou Mobile Home Park, in Channelview, Texas, is a well main-tained manufactured home community, with city water, city sewer, cable TV, and electricity on site. This is primarily a working class all ages park, with many long term tenants. All tenants own their own homes (no park owned rental homes). Individual water metering is in place, and the tenants are billed separately for water and sewer and trash removal. All homes in the park have skirting.

3 The park is located north of Interstate 10 approximately 2 miles. The park is situated in a primarily residential neighborhood, although there is a commercial and retail area approximately ½ mile west of the park. This is one of the nicer older manufactured home parks in Channelview. The current owners have invested time and money to increase the park s curb appeal. There are a number of mature trees on the grounds. The park was repaved several years ago, and the roads are in excellent condition. It is conveniently located east of Houston,Texas, just off Interstate 10 and is only minutes from downtown Houston. Houston is one of the premier metropolitan centers in the country, a vibrant and beautiful city of 2,151,475 residents (as of Jan, 2013). It is among the fastest-growing metropolitan areas in the United States. The area grew 25.2 percent between the 1990 and 2000 censuses adding more than 950,000 people while the nation's population increased 13.2 percent over the same period. From 2000 to 2007, the area grew by 912,994 people. From 2000 to 2030, the metropolitan area is projected by Woods & Poole Economics to rank fifth in the nation in population growth adding 2.66 million people. According to Forbes Magazine, Houston ranks number 1 as American's Coolest City in Feel free to call the listing broker, Randy Smith for further details, or to answer questions you may have. He can be reached at: (503) , or on his cell phone: (503) or via randysmith@westernequities.com.

4 Annual Property Operating Data Shady Bayou Mobile Home Park Purpose Purchase scenario Name Shady Bayou Mobile Home Park Location Channelview, Texas Property Type Manufactured Home Park Date 6 September 2013 Units 81 Price $1,595,000 -Loans 0 Down Payment 1,595,000 +Acq Costs 10,000 +Loan Points 0 Investment 1,605,000 $/Unit % of GI Annual $ Gross Income $3, % $256,444 - Vacancy & Credit Loss % 11,166 Effective Income $3, % $245,278 Less: Operating Expenses On Site Manager % 12,250 Insurance % 3,706 Licenses,Legal, Filing Fees 2 0.1% 200 Misc % 200 Professional Fees % 5,512 Property Taxes % 13,502 Sewer Maintenance % 7,345 Repairs % 7,007 Supplies % 1,075 Electric 2012 Annualized 5 0.1% 378 Garbage 2012 Annualized % 17,086 Water/Sewer 2012 Annualized % 23,744 Total Operating Expenses $1, % $92,005 Net Operating Income $1, % $153,273 Less: Debt Service Total Debt Service $0 0.0% $0 Cash Flow Before Taxes $1, % $153,273 Capitalization Rate 9.61% Gross Income Multiplier 6.22 Cash on Cash 9.55% Price/Unit $19,691 The data and calculations presented herein, while not guaranteed,have been obtained from sources we believe to be reliable, primarily from the seller. Potential purchasers must verify all information regarding this property independently, and are urged to obtain the advice of qualified accounting, legal, and 1031 tax-deferred exchange professionals.

5 Analysis Assumptions Report Shady Bayou Mobile Home Park Investment Assumptions Price of Property $1,595, Closing Costs $10, Date of Acquisition 1 January 2014 Holding Period 5 Years Inflation Rate 3% per Year Sale Price Method 8.5% Capitalization of NOI on Sale Date Selling Costs 4.5% Investor's Assumptions Present Value Discount Rate 8% per Year Tax Rate - First Year 37% Tax Rate - Following Years 37% Capital Gain Rate 25% Cost Recovery Recapture Rate 25% - Losses Carried Forward Estimated Depreciation Assumptions Depreciable Amount $900, Depreciable Life 15 Years Depreciation Method 150% Declining Balance Recapture Method Excess Over Straight Line Depreciation Start Date 77 Pad $215/mo Revenue Assumptions Annual Revenue (77 $215.00/Unit/Month) $198, Revenue Start Date Revenue Period Revenue Growth Method Vacancy Factor 5% 7 Pad $175/mo Revenue Assumptions Annual Revenue (7 $175.00/Unit/Month) $14, Revenue Start Date Revenue Period Revenue Growth Method Vacancy Factor 5% Water/Sewer Reimbursement 2012 Revenue Assumptions Annual Revenue $32, Revenue Start Date Revenue Period Revenue Growth Method

6 Analysis Assumptions Report Shady Bayou Mobile Home Park Trash $10/mo Revenue Assumptions Annual Revenue (83 $10.00/Unit/Month) $9, Revenue Start Date Revenue Period Revenue Growth Method Vacancy Factor 5% Late Charges Average 5yrs Revenue Assumptions Annual Revenue $ Revenue Start Date Revenue Period Revenue Growth Method On Site Manager Expense Assumptions Annual Expense $12, Insurance Expense Assumptions Annual Expense $3, Licenses,Legal, Filing Fees Expense Assumptions Annual Expense $ No Growth is Projected Misc. Expense Assumptions Annual Expense $ No Growth is Projected Professional Fees Expense Assumptions Annual Expense $5,512.00

7 Analysis Assumptions Report Shady Bayou Mobile Home Park Property Taxes Expense Assumptions Annual Expense $13, Sewer Maintenance Expense Assumptions Annual Expense $7, No Growth is Projected Repairs Expense Assumptions Annual Expense $7, No Growth is Projected Supplies Expense Assumptions Annual Expense $1, Electric Expense Assumptions Annual Expense $ Garbage Expense Assumptions Annual Expense $14, Water/Sewer 2012 Annualized Expense Assumptions Annual Expense $23,744.00

8 Sheet1 SHADY BAYOU - AUGUST 2013 LOT NAME LOT RENT TRASH 1 WILBANKS, J. $ GANDARA, L. $ OLIVER, J. $ CASTRO, JOSE $ GARCIA, A. $ ALEMAN, C $ RODRIGUEZ, R $ GUEMAN, S. $ CUNDAPI, I. $ GARCIA, R. $ VACANT $ $ - 12 CUNDAPI, M $ ALONSO, J. $ FLORES, Y $ REYES, G. $ OJEDA, MARIA $ ROMERO, A. $ CUNDAPI $ GARCIA, M. $ GARCIA, A. $ TOTALS $ 4, $ Page 1

9 Sheet1 LOT NAME LOT RENT 21 ALEMAN, I. $ PULIDO,ADRIAN$ TORREL, F. $ PRADO, V. $ RIVERA, A $ RIVERA, G. $ RODRIGUEZ, A $ RODRIGUEZ, C $ PEREZ, Maria $ RODRIQUEZ,J. $ RODRIGUEZ, C $ ASTELLO, J. $ HERNANDEZ,C $ RUBIO, LUCIA $ GARCIA P. $ LIGUEZ, LYDIA $ PALACIOUS, J. $ ZUNIGA, R. $ NAVA, MIRELLA $ PULIDO, A. $ TOTAL $ 4, $ Page 2

10 Sheet1 LOT NAME LOT RENT 41 BENITEZ, C. $ IRACHETA, O. $ SERRANO, M. $ GARCIA, A. $ CARBAJAL, L. $ RIOS,CELENE $ RODRIGUEZ,J $ OSCAR, A. $ MARTINEZ, M. $ DELGADO, VER $ VERA, ANA $ MARTINEZ, J $ DIGGS, L. $ TRENIG, EVA $ ALANIZ,JOVITA $ GIL, GUADLUPE $ GARCIA, A. $ GARZA, ELIANA $ WARREN, A. $ RODRIQUEZ,J. $ TOTAL $ 4, $ Page 3

11 Sheet1 LOT NAME LOT RENT 63 LANE, R. $ CRUZ, JANET $ FELIPE, JOSE $ MARTINEZ, J. $ ARMENDARE,S $ BARRIENTOS, $ RODRIGUEZ,H $ SHOP $ $ - 72 LOPEZ, M. $ OLIVARES, M. $ BELLO, C. $ ARELLANO, N. $ RAMIREZ, E. $ MEDINA, MARIA $ PULIDO, A. $ VERA,MIRIAM $ LAREDO, L. $ SANCHEZ, N. $ SAUCEDO, R. $ RODRIQUEZ,F $ TOTALS $ 4, $ Page 4

12 Sheet1 LOT NAME LOT RENT 84 RIVERA, F. $ BLACK, T. $ $ - TOTALS $ $ TOTALS 17, Page 5

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