3.5 Star, 90-125 Sites, MHC

Orlando - Lakeland, FL RegionOffering #156116613

Presented by

James CookDirect: 386-623-4623 Email: james@mhrvexperts.com

485 Brickell Ave. • Suite 2308 • Miami, FL 33131

Very High Demand 55+ Water Front MHC

Long Term Family Owned and Operated Community

Strong Resale Values and No Park Owned Homes

20% of Sites Feature Newer Double Wide Units, Most Accommodate DW’s

Very Well Maintained with a lot of Goodwill

Transaction Overview

Purchase Overview

Purchase Price $4,350,000

Total Acquisition Cost $4,350,000

Mortgage $3,045,000

Down Payment / Investment $1,305,000

% Of Asking Price % of Cost Interest Rate Term Amort. (yrs.)

Payment

(Monthly – Yr. 1.)

Down Payment: $1,305,000 30% 30% 4.15% 10 30

Total Loan Balance: $3,045,000 70% 70% 4.15% 10 30 $10,531

Property Type Mobile Home Community

No. Of Units (97) - 94 MH & 1 Cottage & 2 Apt.

Price Per Unit $44,845

Income Per Unit $4,668

Expenses Per Unit (1,899)

Acreage 11.75

Single/Double Wide Ratio (%) 40% DW

Age of Units 60’s – 90’s

Utilities: Amenities

Water : Well Clubhouse/Rec. Facility

Sewer : WWTPBoat Slips & Launch

Trash : Curbside

-By Owner Shuffleboard Courts

Discussion / Notes

Subject is a waterfront senior MHC in Central FL, with easy access to fishing, shopping, and the theme parks, residents are kept very busy.

It features wide roads, beautiful landscaping, boat launches, docks, shuffleboard, a clubhouse, and two seasonal rental cottages.

Utilities are provided by well and WWTP which is on a 10 year renewal and is the model system for the region.

Home values range from $5k for the oldest to $45k for the newest, and they average only one abandon home from an estate or resident every couple years.

This is one of the most stable, clean, senior parks we have seen above a 5.5% cap in 2o16 and will make a great passive investment for the right new owner. It has been operated for over 30 years by the same family and with a recent passing they are getting more interested in displacement.

Financial Measurements

Property Overview

Loan Information – Quoted By: Chris San Jose – Head of Lending

Package Assumptions

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. The information, calculations and data presented in this report are believed to be accurate but are not guaranteed. The information contained in this report shall not be considered as a substitution for legal, accounting or other professional advice. Please seek proper legal and tax advice as appropriate before making investments.

Income Growth Rate 5% - Year 2 | 4% Years 3 & 4 | 3% Year 5

*Year 2 Rent Increase is established and takes place in March, 2017

Expense Growth Rate 2% Per Year

Capitalization Rate (Resale) 6.14%

Acquisition Financing 1 Year Interest Only

Year 1 Year 3 Year 5

Effective Gross Income $448,308 $488,149 $522,034

Less: Operating Expenses -$184,167 -$198,890 -$206,925

N.O.I. $264,142 $289,259 $315,108

Annual Debt Service -$126,368 -$175,827 -$175,827

Cash Flow Before Taxes $137,774 $113,432 $139,281

Debt Coverage Ratio 2.09 1.65 1.79

Loan-to-Value Ratio 69.97% 60.94% 53.72%

Cap. Rate (Cost) 6.07% 6.65% 7.24%

Cap. Rate (Resale) 6.07% 6.07% 6.07%

Operating Expense Ratio 41.08% 40.74% 39.64%

Cash on Cash (B / Taxes) 10.56% 8.47% 10.39%

I.R.R. (B/ Taxes) 4.01% 18.06% 19.19%

Property Photos

Offering #156116633

Street View 1

Street View 5Street View 4

Street View 2

Street View 1

Street View 3

Street View 4 Street View 5

Cash Flow Analysis

Rental Activity Analysis Year 1 Year 2 Year 3 Year 4 Year 5

Potential Rental Income $438,500 $460,035 $478,171 $497,028 $511,800

Other Income 14,337 14,623 14,916 15,214 15,519

Less: Vacancy & Credit Losses - - - - -

Less: Rent Concessions & Bad Debts (4,528) (4,751) (4,938) (5,133) (5,285)

Effective Gross Income$448,308 $469,908 $488,149 $507,109 $522,034

Less: Operating Expenses (184,167) (194,990) (198,890) (202,868) (206,925)

Net Operating Income (NOI) $264,142 $274,918 $289,259 $304,241 $315,108

Less: Annual Debt Service (126,368) (175,827) (175,827) (175,827) (175,827)

CASH FLOW Before Taxes $ 137,774 $ 99,090 $ 113,432 $ 128,414 $ 139,281

Property Resale Analysis

Projected Sales Price $4,351,590 $4,529,119 $4,765,389 $5,012,212 $5,191,244

Less: Selling Expenses (87,032) (90,582) (95,308) (100,244) (103,825)

Adjusted Projected Sales Price $4,264,559 $4,438,537 $4,670,081 $4,911,967 $5,087,419

Less: Mortgage(s) Balance Payoff (3,045,000) (2,958,108) (2,904,022) (2,847,647) (2,788,888)

SALE PROCEEDS Before Taxes $1,219,559 $1,480,429 $1,766,060 $2,064,320 $2,298,531

Cash Position

Cash Generated in Current Year $137,774 $99,090 $113,432 $128,414 $139,281

Cash Generated in Previous Years n/a 137,774 236,864 350,296 478,710

Cash Generated from Property Sale 1,219,559 1,480,429 1,766,060 2,064,320 2,298,531

Cash Inflow (Outflow) from Refinancing - (35,000) (35,000) (35,000) (35,000)

Original Initial Investment (1,305,000) (1,305,000) (1,305,000) (1,305,000) (1,305,000)

Total Potential CASH Generated $52,333 $377,293 $776,356 $1,203,031 $1,576,523

Financial Measurements

Debt Coverage Ratio (DCR) 2.09 1.56 1.65 1.73 1.79

Loan-to-Value Ratio (LVR) 70.0% 65.3% 60.9% 56.8% 53.7%

Capitalization Rate Based on Cost 6.07% 6.32% 6.65% 6.99% 7.24%

Capitalization Rate Based on Resale Price 6.07% 6.07% 6.07% 6.07% 6.07%

Break-Even Ratio 69.58% 79.12% 77.00% 74.93% 73.59%

Operating Expense Ratio 41.08% 41.50% 40.74% 40.00% 39.64%

Net Present Value (NPV) - Before Taxes 10.00% (71,061) 96,711 285,306 456,107 559,838

Cash-on-Cash Return with Equity 4.01% 26.65% 26.96% 24.16% 18.09%

Cash-on-Cash Return - Before Taxes 10.56% 7.39% 8.47% 9.58% 10.39%

Internal Rate-of-Return (IRR) - Before Taxes 4.01% 14.20% 18.06% 19.42% 19.19%

Modified Internal Rate-of-Return (MIRR) - Before Taxes 4.01% 13.54% 16.84% 17.74% 17.17%

Annual Property Operating Data

Year 1 Per Unit % Year 2 Per Unit % Year 3 Per Unit % Year 4 Per Unit % Year 5 Per Unit %

Potential Rental Income $438,500 4,520.62 97.81% $460,035 4,742.63 97.90% $478,171 4,929.60 97.96% $497,028 5,124.00 98.01% $511,800 5,276.29 98.04%

Less: Rent Concessions & Bad Debts (4,528) -46.68 -1.01% (4,751) -48.98 -1.01% (4,938) -50.91 -1.01% (5,133) -52.91 -1.01% (5,285) -54.49 -1.01%

Other Income 14,337 147.80 3.20% 14,623 150.76 3.11% 14,916 153.77 3.06% 15,214 156.85 3.00% 15,519 159.99 2.97%

Effective Gross Income $448,308 4,621.74 100.00% $469,908 4,844.41 100.00% $488,149 5,032.47 100.00% $507,109 5,227.93 100.00% $522,034 5,381.79 100.00%

Operating Expenses

Park Relations 1,500 15.46 0.33% 1,530 15.77 0.33% 1,561 16.09 0.32% 1,592 16.41 0.31% 1,624 16.74 0.31%

Cleaning Services 128 1.32 0.03% 131 1.35 0.03% 133 1.37 0.03% 136 1.40 0.03% 139 1.43 0.03%

Equipment Rental 1,313 13.54 0.29% 1,340 13.81 0.29% 1,366 14.09 0.28% 1,394 14.37 0.27% 1,422 14.66 0.27%

Gas & Oil 1,000 10.31 0.22% 1,020 10.52 0.22% 1,040 10.73 0.21% 1,061 10.94 0.21% 1,082 11.16 0.21%

Garbage Disposal 2,274 23.44 0.51% 2,319 23.91 0.49% 2,366 24.39 0.48% 2,413 24.88 0.48% 2,461 25.38 0.47%

Insurance 8,500 87.63 1.90% 8,670 89.38 1.85% 8,843 91.17 1.81% 9,020 92.99 1.78% 9,201 94.85 1.76%

Gross Wages 30,000 309.28 6.69% 30,600 315.46 6.51% 31,212 321.77 6.39% 31,836 328.21 6.28% 32,473 334.77 6.22%

Licenses & Taxes & Permits 43,737 450.90 9.76% 44,612 459.91 9.49% 45,504 469.11 9.32% 46,414 478.50 9.15% 47,342 488.07 9.07%

Legal 1,500 15.46 0.33% 1,530 15.77 0.33% 1,561 16.09 0.32% 1,592 16.41 0.31% 1,624 16.74 0.31%

Miscellaneous 26 0.26 0.01% 26 0.27 0.01% 27 0.27 0.01% 27 0.28 0.01% 28 0.29 0.01%

Accounting Fees 1,500 15.46 0.33% 1,530 15.77 0.33% 1,561 16.09 0.32% 1,592 16.41 0.31% 1,624 16.74 0.31%

Advertising 2,065 21.29 0.46% 2,106 21.71 0.45% 2,148 22.15 0.44% 2,191 22.59 0.43% 2,235 23.04 0.43%

Bank Charges 632 6.52 0.14% 645 6.65 0.14% 658 6.78 0.13% 671 6.92 0.13% 684 7.05 0.13%

Dues & Subscriptions 1,000 10.31 0.22% 1,020 10.52 0.22% 1,040 10.73 0.21% 1,061 10.94 0.21% 1,082 11.16 0.21%

Postage 395 4.07 0.09% 403 4.15 0.09% 411 4.23 0.08% 419 4.32 0.08% 427 4.41 0.08%

Office Supplies 5,142 53.01 1.15% 5,245 54.07 1.12% 5,350 55.16 1.10% 5,457 56.26 1.08% 5,566 57.38 1.07%

Telephone / Fax 2,500 25.77 0.56% 2,550 26.29 0.54% 2,601 26.81 0.53% 2,653 27.35 0.52% 2,706 27.90 0.52%

Travel 1,000 10.31 0.22% 1,020 10.52 0.22% 1,040 10.73 0.21% 1,061 10.94 0.21% 1,082 11.16 0.21%

Office Expenses 1,396 14.39 0.31% 1,424 14.68 0.30% 1,453 14.98 0.30% 1,482 15.28 0.29% 1,511 15.58 0.29%

R&M - Truck 2,500 25.77 0.56% 2,550 26.29 0.54% 2,601 26.81 0.53% 2,653 27.35 0.52% 2,706 27.90 0.52%

R&M - Park 2,549 26.28 0.57% 2,600 26.80 0.55% 2,652 27.34 0.54% 2,705 27.89 0.53% 2,759 28.44 0.53%

R&M - Other 6,435 66.34 1.44% 6,563 67.66 1.40% 6,694 69.01 1.37% 6,828 70.40 1.35% 6,965 71.80 1.33%

R&M - Wastewater 1,999 20.61 0.45% 2,039 21.02 0.43% 2,080 21.45 0.43% 2,122 21.87 0.42% 2,164 22.31 0.41%

R&M - Water 13,917 143.47 3.10% 14,195 146.34 3.02% 14,479 149.27 2.97% 14,768 152.25 2.91% 15,064 155.30 2.89%

Shop Supplies 4,759 49.06 1.06% 4,854 50.04 1.03% 4,951 51.04 1.01% 5,050 52.06 1.00% 5,151 53.10 0.99%

Utilities - Elec. & Other 11,232 115.80 2.51% 11,457 118.11 2.44% 11,686 120.47 2.39% 11,920 122.88 2.35% 12,158 125.34 2.33%

Yard Maint. & B. Check 7,168 73.90 1.60% 7,312 75.38 1.56% 7,458 76.88 1.53% 7,607 78.42 1.50% 7,759 79.99 1.49%

Management Fees (Off-Site) 19,000 195.88 4.24% 19,380 199.79 4.12% 19,768 203.79 4.05% 20,163 207.87 3.98% 20,566 212.02 3.94%

Reserves For Replacement 9,000 92.78 2.01% 9,180 94.64 1.95% 9,364 96.53 1.92% 9,551 98.46 1.88% 9,742 100.43 1.87%

R.E. Tax Liability 7,000 72.16 1.56% 7,140 73.61 1.52% 7,283 75.08 1.49% 7,428 76.58 1.46% 7,577 78.11 1.45%

One-Time Expenses (7,000) -72.16 -1.56% - 0.00 0.00% - 0.00 0.00% - 0.00 0.00% - 0.00 0.00%

Total Operating Expenses $184,167 1,898.63 41.08% $194,990 2,010.21 41.50% $198,890 2,050.41 40.74% $202,868 2,091.42 40.00% $206,925 2,133.25 39.64%

Net Operating Income (NOI) $264,142 2,723.11 58.92% $274,918 2,834.20 58.50% $289,259 2,982.05 59.26% $304,241 3,136.51 60.00% $315,108 3,248.54 60.36%

Less: Annual Debt Service (126,368) -1,302.76 -28.19% (175,827) -1,812.65 -37.42% (175,827) -1,812.65 -36.02% (175,827) -1,812.65 -34.67% (175,827) -1,812.65 -33.68%

Cash Flow Before Taxes $137,774 1,420.35 30.73% $99,090 1,021.55 21.09% $113,432 1,169.40 23.24% $128,414 1,323.86 25.32% $139,281 1,435.89 26.68%