Orange City MHP

Orange City, FL | Off-Market Acquisition | July 2017

Overview

Orange City MHP is an all-ages, affordable community consisting of 65 spaces. The community was acquired through a pocket listing with a local broker, and sourced via our Bring Kevin a Deal initiative.

About the Project

Our podcasts “Real Estate Investing for Cash Flow with Kevin Bupp” and “The Mobile Home Park Investing Podcast” have been downloaded millions of times by folks in over 190 countries. Over time, we’ve become known as leaders in the sector. We leverage this platform to increase deal flow whenever possible. A listener of the podcast located a potential opportunity, served as a bird dog in this transaction, and received compensation for bringing us an off-market deal.

The Challenge

Orange City MHP had experienced decades of mismanagement and was in need of a comprehensive aesthetic turnaround to breathe new life into the community. The downtrodden mhp had below market rents, deferred infrastructure maintenance, various cosmetic issues with park-owned-homes, and was in need of general cleanup.

What We Did

Sunrise negotiated a $1.4mm purchase price and began the turnaround by power washing all homes, repaving the roads, replacing the leach field, and installing water meters to promote conservation. With a significantly improved quality of life, residents were happy to increase their lot rents from $315 to $425 over a three year period, demonstrated by an increase in both physical and economic occupancy.

The Outcome

Sunrise maximized the value of the asset, decided to sell the property at market, and ultimately disposed of the asset for $2.3mm in August 2020. All told, we created nearly $1mm of sweat equity in three years, providing higher-quality affordable housing for residents along the way.