$204,000 before taxes. Mobile home parks in Ontario and Torrance California.
Challenge
The Rice Family owned and operated two mobile home parks in Ontario & Torrance California. Given that all members were over 70, they wanted an investment vehicle that would provide an increase in revenue and less day-to-day management. Both of their investments were also 50+ years old and major upgrades would be needed soon.
Strategy
After analyzing the mobile home parks we decided to list the properties separately given their locations and unique attributes. The mobile home park in Ontario was a senior community.
Result
- Total Equity in both Parks $2,100,000
- Price of FedEx NNN $6,140,000
- Income before exchange $152,000 before taxes
- Income after exchange $204,000 before taxes
- Management before 78 total tenants
- Management after 1 tenant
Additional Benefits
Not only did they increase their yearly income by $52,000 ($4,333 per month increase), but they also acquired a new depreciation schedule on their new investment. Also with the exchange, the time and effort spent managing 78 tenants was better spent with family. The property they own now is worth more than 3x their original investment.