Sold For

$2,590,000

106 Mobile Home Spaces + 31 Cottage Apartments + 101 Rental Mobile Homes

+ Store + 2 Billboards + Office + Payphone

Option Consideration or Down Payment 

$580,000 (20%)

Address/City

433 S. Seventh Street, Modesto, Ca

County

Stanislaus

State

California

Est. Vac. & Expense %

See Proforma and Actuals Attached

Age

Older

Loans

Not Assumable

Capitalization Rate

13.4%

Est. Spendable Return

29%

Total Return

Parcel Size

9 Acres

No. Spaces

137

Map-Page

Zoning

Listing Salesman John Grant  (800) 987-3363

Office San Diego

DESCRIPTION AND TENANT INFORMATION: CASH FLOW! CASH FLOW! CASH FLOW!  Excellent opportunity to continue to upgrade and enjoy the tremendous cash flow of improving rental community in the unincorporated area of Modesto.  106 mobile home spaces with 101 mostly 2 and 3 bedroom rental homes with rents of $460-$720.  31 cottage apartments with 14 studios, 16 one bedrooms, and 1 two bedroom.  Most have private yards and rent for $400-$520.  Rents for both mobile homes and cottages use to includes gas and electric utilities but gas and electric submeters have been installed and gas usage was charged as of July 1^st and electric usage will be charged as of September 1^st.  Owner has reduced rents $35 for gas passthru and will reduce rents another $35 for electric passthru.  However with tenants responsible for gas and electric conservation, the net income will improve.   Well water and septic sewer service with city utility services nearby.  Large office, leased store at $800/month, two billboards at combined $171/month, payphone at $165/month, and laundry room.  38 doublewides, 8 singlewides with expandos, and most spaces can accommodate doublewides.  Original permit allows expansion for five new RV sites.  No mobile home rent control in the County of Stanislaus.  Most mobile home parks in Modest are near 100% occupancy.  Owner has completed significant upgrades to the park in the last two years (see attached list) and buyer can continue to upgrade park and rentals and enjoy the huge cash flow.  Buyer can also sell off mobile homes and convert to traditional mobile home park.  Current owner has sold eleven rental homes through lease/option contracts.  Park has approximately one-half acre of vacant frontage for possible storage.  Property is zoned industrial and ripe for redevelopment.  The property is one-half mile from two Highway 99 exits and one mile from downtown Modesto.  Right across the river from the park the City of Modesto is in the process of developing the 520 acre Tuolumne River Regional Park.  Modesto enjoying large increase in jobs and population from companies and people moving out of Bay area because of very expensive housing prices-2% Modesto apartment vacancy rate.  Owner lives in Chicago and is too far away to effectively manage.  29% CASH FLOW YEAR ONE!!! EXCELLENT UPSIDE, GREAT LEVERAGE, 3.65 X GROSS!          

        TOTAL ESTIMATED NET INCOME BEFORE DEBT SERVICE

See attached spread sheet with 2000 and year to date 2001 actuals and Broker proforma

                                                                      $389,591

LOAN INFORMATION

TOTAL ANNUAL PRIN.                                   $221,049

& INTEREST PAYMENT                                              

Letter of intent from lender at 60% loan to value or $1,740,000 at an 8% adjustable rate with payments fully amortized over 20 years, monthly payment $14,554.06, Seller will carry secondary financing of $580,000 at 8% interest only for 5 years, monthly payment $3,866.67

EST. ANNUAL PRE-TAX                                  $168,542

CASH FLOW (SPENDABLE)