The principals of MHP Funds, LLC ("MHPF") and their affiliated companies are estimated to collectively have the 18th largest mobile home park portfolio in the country with over 7,500 lots in 15 states. The principals have an extensive 15-year track record of success in the mobile home park industry, and have over 55 years of combined real estate investing experience. They have long established relationships with key market participants such as banks, insurance companies, real estate agents and brokers, and are able to source attractive investments through their own popular MHPF listing websites. Their extensive experience in both the ownership and operation of mobile home parks makes them uniquely situated to quickly assess investments, determine their risks, evaluate possible turn-around plans and analyze future growth potential. They have established, proven systems for handling all aspects of mobile home park investing, and their extensive backgrounds and relationships help them identify properties that minimize investment risk and maximize cash on cash returns for investors.
MHPF has developed a set of stringent acquisition criteria that addresses both strong cash flow from day one and adding value to each mobile home park through various means such as increasing rental rates and occupancy, reducing expenses, and improving the quality of the community. The overall objective for each property is to provide an excellent return on investment for both the principals and investors involved, while at the same time providing every resident with a safe and affordable place to live.
The principals of MHPF are recognized as industry leaders, highly regarded educators, and consultants, having authored books and written articles on mobile home parks, conducted mobile home park "boot camps" and educational seminars, and served as mentors and advisors to other mobile home park investors. They have also developed some of the most respected websites dedicated to the MHPF and RV park industries.
Performance of Prior Funds
Members of MHPF have a strong track record in mobile home park investing that spans over a decade. Since 2010, they have raised over $32 million for six similarly structure funds. However, as with any investment, past performance is no guarantee of future results.
- MHPS Alumni, LLC ("Alumni 1"): This fund was fully subscribed in May 2010. A total of $2 million of investor capital was raised and used to purchase 437 spaces in five parks located in Colorado, Nebraska, Kansas, and Wisconsin. To date, three parks have been sold (La Junta, CO; Crete, NE; and Black River Falls, WI) and two additional parks were purchased (a portion of Elsmere, KY, and a park in Platteville, WI).
- MHPS Alumni 2, LLC ("Alumni 2"): This fund was fully subscribed in October 2010. A total of $2 million of investor capital was raised and used to purchase all or portions of 595 spaces in five parks located in Illinois, North Dakota, and Oklahoma. In addition, the fund has purchased a portion of a park in Elsmere, KY.
- MHPS Alumni 3, LLC ("Alumni 3"): This fund was fully subscribed in June 2011. A total of $3 million of investor capital was raised and used to purchase all or portions of 985 spaces in 12 parks in Iowa, Minnesota, Wisconsin, Texas, North Dakota, Massachusetts, and Colorado. To date, two parks have been sold (New Braunfels, TX and Eau Clair, WI) and a portion of a park in Elsmere, KY has been purchased.
- Affordable Housing Community Fund 1, LLC ("AHCF 1"): This fund was fully subscribed in February 2012. A total of $5 million of investor capital was raised and used to purchase all or portions of over 1,700 spaces in 18 parks in Nebraska, Illinois, Kansas, Colorado, Minnesota, Iowa, Texas, and Kentucky.
- Affordable Housing Community Fund 2, LLC ("AHCF 2"): This fund was fully subscribed in October 2012. A total of $10 million of investor capital was raised and used to purchase all or portions of almost 2,100 spaces in 16 parks in Iowa, South Carolina, Oklahoma, Illinois, Kansas, Wisconsin, and Nebraska.
- Affordable Housing Community Fund 3, LLC ("AHCF 3"): This fund is estimated to be fully subscribed by the end of July 2013. A total of $10 million of investor capital is being raised to purchase all of portions of over 2,000 spaces in 18 parks in states such as Washington, North Dakota, Texas, Indiana, Missouri, Illinois, and Nebraska.
PARAMETER | ALUMNI 1 | ALUMNI 2 | ALUMNI 3 | AHCF 1 | AHCF 2 | AHCF 3 |
---|---|---|---|---|---|---|
Date Fully Subscribed | May 2010 | Oct. 2010 | Jun 2011 | Feb. 2012 | Oct. 2012 | July 2013 |
Investor Capital Raised ($) | $2,000,000 | $2,014,500 | $3,000,000 | $5,000,000 | $10,000,000 | $10,000,000 |
Investor Capital Returned ($) | $450,000 | $0 | $0 | $0 | $0 | $0 |
Unreturned Investor Capital ($) | $1,550,000 | $2,014,400 | $3,000,000 | $5,000,000 | $10,000,000 | $10,000,000 |
Number of Parks Owned (Fully or Partially) | 4 | 5 | 8 | 13 | 14 | 18 |
Number of Mobile Home Park Lots (Ownership % Adjusted) | 274 | 492 | 565 | 835 | 1424 | |
Estimated Current Occupancy (%) | 86% | 83% | 70% | 77% | 82% | N/A** |
*As with any investment, past performance is no guarantee of future results

MHPF currently owns nine (9) mobile home parks in this fund and is in the process of acquiring four (4) additional parks in the next two months.
Park Name | Location | Status | Closing Date | AHCF 4 Ownership | Purchase Price | Total Spaces | Occupancy | Avg. Lot Rent |
---|---|---|---|---|---|---|---|---|
Riverridge MHC | Grand Praire, TX | Acquired | 9/24/13 | 100% | $2,500,000 | 111 | 67.6% | $440 |
Spalls MH Village | Monroeville, IN | Acquired | 10/17/13 | 100% | $505,000 | 81 | 49.4% | $240 |
Hillscrest MHP | Clarks Grove, MN | Acquired | 10/30/13 | 100% | $1,400,000 | 97 | 93.8% | $180 |
Valley View Terrace | Belle Plaine, MN | Acquired | 11/21/13 | 100% | $1,500,000 | 68 | 83.8% | $425 |
Chancellors MHP | Fountain, CO | Acquired | 12/15/13 | 50% | $1,825,000 | 121 | 54.5% | $365 |
Westhill | Emporia, KS | Acquired | 12/18/13 | 100% | $1,200,000 | 114 | 84.2% | $160 |
Mobile Lodge MHC | Lecompton, KS | Acquired | 12/20/13 | 100% | $880,000 | 55 | 69.1% | $305 |
Mobile Manor | Wichita, KS | Acquired | 12/20/13 | 100% | $2,500,000 | 277 | 63.2% | $242 |
Oak Terrace & Cedar Knob | Killeen, TX | Acquired | 12/23/13 | 40.5% | $866,000 | 98 | 75.5% | $220 |
Woodland Estates MHP | Decatur, IL | Pending | 2/15/14* | 50% | $1,100,000 | 265 | 37.0% | $280 |
Hi Vue MHP | Sartell, MN | In Due Diligence | 2/28/14* | 100% | $3,050,000 | 167 | 95.8% | $330 |
Rustic Manor | Anderson, IN | In Due Diligence | 3/10/14* | 100% | $395,000 | 41 | 92.7% | $175 |
Rex Aire MHP | Arnold, MO | In Due Diligence | 3/10/14* | 50% | $2,275,000 | 100 | 97.0% | $240 |
*Estimated Closing Dates
Property Highlights:
- Riveridge MHC, Grand Prairie, TX: Riveridge MHC is located in Grand Prairie, Texas, a market where the occupancy for mobile home parks is 95%. The anticipated exit strategy could be to sell to RHP Properties, one of the nation's largest owners of mobile home parks, which also owns a nearby property. The acquisition is a re-capitalization for the current owner, who is a major developer. The primary objective in this investment is to enforce collections, fill lots, reduce high expenses, and work to recapture 100% of the water and sewer costs. This acquisition will likely be financed with a conduit loan.
- Spalls MH Village, Monroeville, IN: This is a foreclosure mobile home park that was purchased from the foreclosure sale purchaser. The park is well located in an area near other MHPF owned parks and there are currently 45 occupied spaces from the 85 total lots at the park. The park may potentially be a good short term hold until it is sold or refinanced.
- Hillcrest MHP, Clark Grove, MN: This park is well located in a strong market nearby other mobile home parks that MHPF owns and operates. The primary objective of this investment is to increase net operating income by both increasing revenue through raising current rents and decreasing costs by passing through particular expenses that are currently the responsibility of the landlord to the tenants, specifically water, sewer and trash costs.
- Valley View Terrace, Belle Plaine, MN: Valley View Terrace is the only mobile home park in Belle Plaine, MN. Belle Plaine is 25 miles southwest of Minneapolis, 35 minutes from the Mall of America, and has a population of approximately 7,000. The mobile home park has 68 mobile home lots and 43 storage units. There are currently 57 lots occupied and 11 storage units leased. All of the streets except for one small private street are owned and maintained by the city. The primary objective in this investment is to enforce collections and fill lots. This acquisition will likely be financed with a local bank loan.
- Chancellors MHP, Fountain, CO: AHCF 4 was the winning bidder for this park at an auction and acquired it for a very attractive price. This park is located in an excellent location in Colorado with substantial upside value.
- Westhill, Emporia, KS: This park is located in an area that is expected to have a significant number of new jobs come to town in the near future. The primary objective of this investment is to increase current rents and increase occupancy by renting the remaining unoccupied homes, thereby increasing cash flow and property value.
- Mobile Lodge MHC Lecompton, KS: This park is located in a high demand area near Kansas University. It has been very well kept and shows well. The primary objective is to maximize net operating income by filling remaining occupancy.
- Mobile Manor, Wichita, KS: This is an attractive looking park on a mobile home park row in Wichita. Wichita is a growing city in Kansas with a declining unemployment rate. It is well located and has good infrastructure.
- Oak Terrace & Cedar Knob Killeen, TX: These two parks are located in a strong mobile home market where it is difficult to find parks at under $10,000 per lot. The plan for these parks includes completing some deferred maintenance by way of cleaning the park and completing some road work after which the management team expects to substantially increase the occupancy percentage by filling current vacant lots.
- Woodland Estates MHP, Dectaur, IL: Decatur, IL has a population of 115,00 and a well-diversified employment base due to the nearby presence of Caterpillar, Archer Daniels Midland, several hospitals and Millikan University. This park is located directly across the street from the Archer Daniels Midland "campus." Archer Daniels Midland is one of the largest companies in the United States with roughly $89 billion in annual sales. In the opinion of MHPF, the current owners of the park have mismanaged the park to the point of virtually abandoned it, which has resulted in a very low occupancy percentage. The business plan for this property will be focused on significantly increasing the occupancy level from the existing 37%.
- Hi Vue MHP Sartel, MN: This park is currently in due diligence.
- Rustic Manor, Anderson, IN: This park is located in a strong market near other parks that are owned and operated by MHPF. Rents for this park are currently under market by $35-$50/month.
- Rex Aire MHP, Arnold, MO: MHPF believes that this park is superior to another park that it currently owns and operates in the same market due to this park's newer homes and larger lots. However, this park currently generates $240/lot while MHPF's other park currently generates $340/lot. MHPF will look to increase rents to market levels for this park after acquisition, thereby significantly increasing operating income.
Based on the characteristics of properties purchased thus far for MHPF, properties purchased for prior funds (2010-2012), and the types of properties MHPF is currently seeing in the market, the investment criteria below outlines the typical profile for a mobile home park property that could be acquired for this fund.
Parameter | Approximate Value | Notes |
---|---|---|
Price per lot ($) | $12,300 |
|
Loan-to-value | 66% |
|
Utilities: Water and Sewer | City services |
|
Utilities: Gas and Electric | Not master-metered |
|
Metro population | 10,000 to 2 million+ |
|
Location | Midwest and Great Plains region |
|
Age/condition of homes | Mix of newer and older, in average to good condition |
|
Tenant vs. park-owned homes | Mostly tenant-owned |
|
Amenities | Few to none |
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Occupancy | 70%+ |
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Permit status | Only legally permitted |
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Going-in cap rate | Greater than 10% |
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Going-in cash-on-cash (CoC) | Greater than 15% |
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