TITLE:
Depreciation Play! RV Park Discount Sale Buy Back
CONTROL:
Owner
VALUE:
$2,200,000
LOAN:
$1,100,000
EQUITY:
$1,100,000
TYPE:
Mobile Home/RV
HAVE:
Sale at $1,800,000, then buy back at $2,000,000 on 12-60 month lease option to purchase with projection around 24 month mark. $219,600 NOI at 9 cap = $2,440,000 value in 2027 (24 months). $1,260,000 depreciation on $1,800,000 purchase. Can use 40% in 2025
ADDRESS:
1715 Tin Cup Road, Mahomet, Illinois
BENEFITS TO NEW OWNER:
Big depreciation play on growing RV park asset that has adjacent vacant land to expand to demand. $1,260,000 depreciation from cost segregation study on $1,800,000 purchase.
GROSS SCHEDULED INCOME:
$345,000 Actual
VACANCY LOSS:
$30,000
GROSS EFFECTIVE INCOME:
$315,000
EXPENSES:
$132,000
NOI:
$183,000
DEBT SERVICE:
$67,000
CASH FLOW:
$116,000
CAP RATE:
8.32%
ENCUMBRANCE
BALANCE
PAYMENT
RATE
DUE
ASSUMABLE
LOAN 1
$873,000
$5,515
4%
03/09/2025
No
LOAN 2
$228,000
$887
2%
03/09/2025
No
BENEFITS SOUGHT:
Liquidity for reimbursements on the $500,000 in upgrades the last 3 years, then buy back the property to reset deprecation schedule.
CAN ADD:
RVs, tiny homes, SFR, and Chicago Cubs tickets.
REMARKS:
We plan to hold this property forever. We have 3.5% interest rate and 2% interest rate adjusting March 2025, so looking to recapitalize and buy back to continue expansion and hold FOREVER.
COUNSELOR:
Quentin McNew
Tin Cup RV Park
501 N Neil, Suite 2
Champaign, Illinois, 61820
Phone: 2175524062
Email quentin@mcnewcapital.com
