Sugar Court Mobile Home Park

Project Location:

Sugar Court Mobile Home Park

Project Details:

Sugar Court Mobile Home Park consists of a 21-Space Community in Lyons, Indiana with 17 park-owned units and 4 tenant owned homes and 18 storage units. The property has a substantial upside with some cosmetic renovations, landscaping and adding additonal amenities that will increase revenues ach month. This project shows increased revenues that will reach over 180% simply by completing some cosmetic renovations. The park al;so has the ability for an additional 11 lots which will add an additional $85,800 onto the revenue for the year bring this park to $171,000 per year of Gross Revenues with a net revenue of $111,150 per year. These parks require an onsite manager to maintain upkeep and the safety of the park of which will save countless dollars in the long run. This MHP makes a solid holding for any investors, new or experienced.

Summary

This report provides a comprehensive investment analysis for the Sugar Court Mobile Home Park, a 21-site, all-ages community located in Lyons, Indiana. The analysis indicates a strong investment opportunity with significant value-add potential. The property is currently 100% occupied, demonstrating robust local demand for affordable housing. However, the current lot rent of $300 per month is substantially below the national average of $514 for comparable communities, presenting a clear opportunity for revenue enhancement.

Financial projections demonstrate that a moderate, phased rent increase of 8% annually over five years can significantly increase the property's Net Operating Income (NOI) and overall valuation. By implementing a series of strategic improvements, including the introduction of ancillary income streams and enhancements to property aesthetics and management, the owner can unlock the full potential of this asset. This report details the property's current standing, market conditions, financial projections, and a series of actionable recommendations for maximizing returns.

Property Data and Basic Information

Basic Property Information

• Property Name: Sugar Court Mobile Home Park

• Address: 270 South Walnut Street, Lyons, IN 47443

• Property Type: Mobile Home Park / Multifamily Property

• Community Type: All Ages Community

Market Analysis

Local Market Demographics (Lyons, IN)

The town of Lyons, Indiana, with a population of 862, presents a stable market for mobile home park investments. The median household income is $57,917, and the median property value is $76,300, making traditional homeownership a challenge for many residents and driving demand for affordable housing options like mobile home parks.

Employment and Economic Conditions

The local economy is supported by the healthcare, retail, and manufacturing sectors, providing a stable employment base. The average commute time of 23.8 minutes suggests that residents may also work in nearby larger communities, expanding employment opportunities.

Comparable Mobile Home Parks

There are approximately 10 mobile home parks in Greene County. The most significant comparable is Parkview Mobile Manor in Linton, a 125-site community with superior amenities, which is also fully occupied, indicating strong regional demand.

Rental Rate and Occupancy Analysis

National Benchmarking

The national average site rent for all-ages mobile home communities is $514 per month, with an average occupancy rate of 91%. Sugar Court's current rent of $300 is significantly below this benchmark, while its 100% occupancy rate is well above the national average.

Rent Optimization Potential

The large gap between the current rent and the national average suggests a substantial opportunity for rent optimization. Even a conservative increase would significantly improve the property's cash flow and valuation.

Financial Analysis and Projections

Current Financial Performance

•Gross Annual Income: $75,600

•Net Operating Income (NOI): $45,749

•Current Cap Rate: 8.70%

Financial Projections

We have modeled several rent increase scenarios. The following charts illustrate the potential growth in monthly rent and NOI over a five-year period.

Monthly Rent Projections by Scenario

Recommendations for Improvement and Valuation

Strategies for Enhancing Rental Income

• Implement a Phased Rent Increase Program: A moderate annual rent increase of 8% is recommended to balance revenue growth with tenant retention.

• Introduce Ancillary Income Streams: Implement a utility bill-back program, enforce late fees, charge pet fees, and offer on-site storage solutions for rent.

Strategies for Improving Property Valuation

• Focus on Expense Reduction: Conduct an energy and water audit and implement a proactive maintenance program.

• Enhance Property Aesthetics and Amenities: Improve curb appeal with landscaping and signage, consider infrastructure upgrades like paving roads, and add community amenities such as a picnic area or playground.

• De-Risk the Investment: Implement a rigorous tenant screening process, enforce clear community rules, and maintain professional management.

Location Data

• "B-" Rating for 47443 Zip Code on Niche

Investment Overview:

Why Invest in Sugar Court Mobile Home Park?

• Strong Cash Flow: backed by a strong rental market and rental strategy

• Value-Add Rental Play: With the ability to improve each unit cosmetically, improve the grounds cosmetically, and increase the rents for both the lots & park-owned homes (POH), as well as add additional revenue streams to the park, it will definitely be a solid long-term asset.

• No HOA

• Regular Passive Monthly Income: rent distributed directly to your account—no lockup, peer-to-peer liquidity

• Ability to Trade or Sell your Tokens: peer-to-peer or on the Secondary Market

• Documented transparency: every report and contract available for review

• Professional oversight & management by active management company specializing in vacation & corporate rentals

• Fractional Access of Ownership: Own a piece of the next project in Fractional Syndication's real estate evolution starting at just $250 per token.

Conclusion

Sugar Court Mobile Home Park is a well-performing asset with significant untapped potential. The property's 100% occupancy and below-market rents create a clear path for value creation. By implementing the strategic recommendations outlined in this report, the owner can expect to see a substantial increase in both rental income and overall property valuation, making this a highly attractive investment opportunity.

Estimated Project “Go-Live” Date (Projected): TBD

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