Why sherwood forest?
Multiple Exit Strategies – With control over the HOA and by purchasing 19 Single Family Homes our team will be able to keep or sell any number of the properties on a schedule and timeline determined by us. With the housing market in the area experiencing such great demand we can sell a portion of the homes to individual buyers and keep some. We can sell as a portfolio. We can keep all of them. We can sell a portion as Short-Term Rentals, to investors, at a premium, due to the STR restrictive market.
the property
The property currently has 75 Mobile Home pads spread out over 30 beautiful acres. Nestled among mature trees, tenants enjoy spacious country living just 15 minutes from Downtown Oklahoma City. The park is right off I-40, yet due to the rolling hills, freeway noise is muted. The park is on its own well and sewer systems and tenants cover their own electric usages. The park is conveniently located 10 minutes from Tinker AFB, and 10 Minutes from all the conveniences of shopping at big name stores, multitude of restaurants, and Rose State College. And just 13 minutes to enjoy fishing or boating at Lake Stanley Draper.
the opportunity
Need for Affordable Housing. 99% of the homes are tenant-owned. Currently, all of the Mobile home pads are renting for $300. Even at market rents, our underwriting assumptions still meet the need for affordable housing options, plus providing a pleasant environment in which to live. Due to the demand for affordable housing in Oklahoma City and the surrounding communities, we will be able to keep the property leased up.
New Management: The prior owners self-managed the Park and many aspects of the park were mismanaged. Through professional management we will be creating a place where reputable individuals, families, and seniors can enjoy upkept grounds, a pleasant living environment, and responsible neighbors. We will implement professional management immediately. We are in the process of interviewing property managers. We are looking for a management company near the park who are professional, courteous, responsive to tenants' needs, and has a backbone to ensure the park demonstrates excellence and beauty and has reputable tenants.
the city
Pro-Investor: Minimal Regulations - No rent control - Fast evictions
Pro-Business: HQ for 25 major companies - High # of energy companies - #3 Wind Energy Production
Pro-People: Top National Film Festival - Top 5 Sunshine Days - Low Cost of Living
Population: ~1.5M - The metro population is expected to grow by 6.2% from 2020 – 2030
Median Income: ~$68k - There was a 7.28% increase in 2021.
Unemployment: 2.8% - Well below the national average of 4.1%, proving market strength
Median Age: 35 - Many young adults live here, representing a large renter pool
the business plan
Bring Rents to Market Rent: Upon acquiring the property, we plan to introduce a $100 monthly increase in lot rent with tenants receiving a 60-day notice from the outset. A $50 rent increase will take place in Year 2, and a $35 increase in year 3, bringing the average rent rate to$485 per pad.
We are establishing our rent assumptions at a conservative rate to leave room for market fluctuations. Each year we will reassess in order to keep our Park competitive and at or near market rents.
Local Housing Comps: For desirable Parks in the area the average rent is $485, plus utilities, with rents ranging from $450 to $525 (plus utilities)/month.
CapEx budget: $15,000 for repairing roads and $10,000 for landscaping
Exit Strategy: Our exit strategy is to hold the Property for cash flow and property equity and then sell it after 5 years. A future investor will be able to carry out an expansion plan of the park to add an additional 21-35 new pads for additional revenue.
Anticipated Final Value: Through bringing rents up to market rates, cleaning up the curb appeal, and providing tenants with a more enjoyable community, we are aiming to see a CAP Rate of 8.5 CAP and a sales price of $3.675M in 5 years.e, representing a large renter pool
why we love mobile home parks
Recession Resistance. Historically, MHPs have been resilient and weathered economic storms better than most other commercial asset classes. Demand typically increases in declining economies.
Affordability. Mobile homes are lowest-cost form of acceptable shelter in the U.S, filling an important role
e in low-income housing Mobile homes can be built for half the cost of site-built structures.
Growing Demand. 20% of the U.S. population has a household income of $20K or less. 10,000 baby boomers are retiring daily, many rely on social security income of only $15K per year.
Barriers to Entry. Most cities discourage new MHP expansion or development; less than 10 new MHPs are being built in the US each year…leading to an overall shrinking supply per capita.
Higher Yields. MHPs have higher capitalization rates and returns than most other commercial asset classes. This is amplified by relatively low expense ratio (35-40%) as compared to apartments.
Low Turnover. It can cost $5K or more to move a mobile home. 90% of homes are never moved after being placed. MHP income can be very stable, providing consistent cash flow once stabilized.
Low Maintenance Costs. In a tenant-owned park, maintenance is limited to the street, pad utilities, common areas, infrastructure.
Shared Responsibility. Tenants are responsible for home and yard; owner looks after the park and common infrastructure.
the projected returns
