247 Marmandie Ave, New Orleans, LA 70123

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This is a great investment opportunity at a cap rate of approximately 10%. It offers a solid cash flow and more importantly does not require large capital expenditures and maintenance that other rental properties require. The only maintenance required is $2400/year on landscaping. All mobile homes are owned by tenants (so they are responsible for repairs).

The mobile home segment of the housing market is currently very strong given that 20% of Americans household income is less than $20,000. With a government suggest housing cost to total income ratio of 33%, these families can afford about $500 per month for housing. The only options within this budget are low rent apartments or mobile home parks. When choosing between these two options, more people would prefer to live in mobile parks. Another added benefit is low turnover rates given the $4,000 barrier to move a trailer.

The Longstreet Mobile Village is a 69 space mobile village located in River Ridge at 247 Marmandie Avenue, two blocks north of Jefferson Highway. Each mobile home site is individually metered for both sewer and electric. All utilities and roads are privately owned by the park. The park is currently fully leased with monthly rents between $320 - $375 and none of the mobile homes are owned by the park (all owned by tenants). Also, not included in gross revenue number below is the potential for laundry income, which is not currently in operation but brought in $4,800 in previous years. Projected NOI for 2013 is $212,166, which includes a 3% management fee.