$0 to $8M+ — Mobile Home Park Reposition, Infrastructure Lift, Depreciation & Cash-Out Refi

By Jai Thompson — Pretty Boi CEO™

INTRO

I manage a private equity platform deploying 13–18 million per quarter across multiple real estate asset classes.

Our model is asset-based, escrow-directed, and execution-driven, allowing us to close in 23 days or less with certainty and clean title flow.

We acquire and operate across luxury estates, single-family residential portfolios, multifamily communities, hospitality and hotels, mixed-use properties, RV parks and mobile home communities, golf resorts and destination assets, and specialized housing portfolios.

Capital is structured, operators are paid, reserves are built in, and all disbursements are controlled through escrow. We deploy with discipline, transparency, and speed—while tithing back to the communities we serve.

REAL USE CASE

Property: 120-Lot Mobile Home Park — Dallas, TX
Broker: Kevin Morales
Seller Situation:

• Mom-and-pop owner
• 30 vacant pads
• Rents below market
• Infrastructure outdated
  👉 Strong upside, poor execution

STEP 1 — WHAT YOU LOOK FOR

1. Vacancy

• Empty pads = instant upside

2. Low Lot Rents

• Market is higher

3. Infrastructure Issues

• Roads
• Utilities
• Drainage

4. Tenant-Owned Homes (BEST MODEL)

👉 You want lot rent, not maintenance

STEP 2 — FIND THE GAP

FMV

$8,000,000

Offer (85%)

$6,800,000

Recorded (45%)

$3,600,000

Loan (24%)

$1,920,000

STEP 3 — SELLER PAYOFF

$6,800,000 − $1,920,000 = $4,880,000

STEP 4 — CASH IN = CASH OUT

Recorded Pool = $3,600,000

• Seller (at close): $2,400,000
• Closing costs: $150,000
• Finder fee: $150,000
• Lender fee: $150,000
• Cash back (5%): $400,000
• Kayan Trust: $80,000
• Infrastructure + infill reserve: $270,000

👉 Total = $3,600,000

Remaining Seller Payoff:
$4,880,000 − $2,400,000 = $2,480,000 (structured)

STEP 5 — CURRENT INCOME (BROKEN)

90 occupied lots
Lot rent: $400

👉 90 × $400 = $36,000/month
👉 $432,000/year

Expenses (40% — parks are efficient):
$172,800

👉 NOI = $259,200

STEP 6 — REPOSITION PLAN (THIS IS THE MONEY)

WHAT YOU DO

1. Fill Vacant Pads (30 lots)

• Bring in used homes or partner with dealers

2. Raise Rents

• $400 → $600

3. Upgrade Infrastructure

• Roads
• Utilities
• Lighting

CAPITAL NEEDED (INSIDE STRUCTURE)

• Roads/utilities: $150K
• Infill homes support: $100K
• Cleanup + marketing: $20K

👉 Total ≈ $270K (already in reserves)

STEP 7 — NEW INCOME (SIMPLE)

120 lots × $600

👉 $72,000/month
👉 $864,000/year

Expenses (40%):
$345,600

👉 New NOI = $518,400

STEP 8 — DEBT

Loan: $1,920,000
Interest only (8%):
$153,600

TRIPLE THREAT

DSCR

$518,400 ÷ $153,600 = 3.37 ✅

Debt Yield

$518,400 ÷ $1,920,000 = 27% ✅

Yield

$518,400 ÷ $8,000,000 = 6.4%

STEP 9 — DEPRECIATION

Assume:

• Improvements (not land) = $3,000,000

👉 $3,000,000 ÷ 15 years (bonus + accelerated typical in parks)
≈ $200,000/year

Tax Effect

NOI: $518,400
Depreciation: −$200,000

👉 Taxable ≈ $318,400

👉 More real cash stays

STEP 10 — REFINANCE PLAY

New value (8 cap):

$518,400 ÷ 0.08 = $6,480,000

New Loan (70%)

$4,536,000

Cash Out

$4,536,000 − $1,920,000 = $2,616,000

YOUR POSITION

• Controlled park
• Filled lots
• Raised rents
• Used depreciation

👉 You extract $2.6M

PROFORMA (WHAT YOU SHOW LENDER)

Current NOI: $259K
Stabilized NOI: $518K

Driver:

• Fill 30 lots
• Raise rents $200

Timeline: 6–12 months

👉 Simple, believable, executable

HOW YOU EXPLAIN TO LENDER

“This is a low-risk reposition. We’re not building—we’re filling existing lots and adjusting rents to market. Infrastructure is budgeted inside reserves. Income doubles without heavy risk.”

COMMUNICATIONS

BROKER TEXT

“Hey Kevin this is Jai. Quick context—I acquire mobile home parks through structured closings. Before I review, what’s causing the vacancy here?”

FIRST EMAIL

Subject: Structured Close — Mobile Home Park

Kevin,

Quick context—I manage a private equity platform deploying 13–18 million per quarter.

We close through escrow using title-directed disbursements with a 23-day timeline.

We see a clear reposition opportunity through infill and rent adjustments.

Attached is our Certainty Kit outlining execution and proof of capital.

Before submitting terms:

• Infrastructure condition?
• Vacancy timeline?

Jai Thompson

TEXT AFTER

“Just sent structure and certainty kit. Want to make sure we’re solving the right issue—what’s limiting occupancy?”

ROLEPLAY (10 BACK & FORTH)

1
Broker: Seller wants top dollar
Jai: What’s driving the sale?

2
Broker: Vacancy
Jai: That’s fixable

3
Broker: Rents low
Jai: Also fixable

4
Broker: Seller unsure
Jai: I’ll show breakdown

5
Broker: Timeline?
Jai: 23 days

6
Broker: Funding?
Jai: Escrow structure

7
Broker: Complex
Jai: Title handles it

8
Broker: Price gap
Jai: Structure solves it

9
Broker: Plan?
Jai: Fill lots + raise rents

10
Broker: Send offer
Jai: Sending now

EMAIL THREAD

Broker: Need proof
Jai: Included

Broker: Seller confused
Jai: I’ll simplify

Broker: Wants fast close
Jai: That’s our model

LENDER EMAIL

Subject: MHP Acquisition — Strong Coverage

Lender,

Deal overview:

FMV: $8M
Loan: $1.92M

NOI: $518K

DSCR: 3.37
Debt Yield: 27%

Value-add through infill and rent increases.

Seeking interest-only structure.

Jai Thompson

TITLE EMAIL

Subject: Structured Escrow Close — MHP

Title Team,

We are structuring this transaction using recorded price with full title-directed disbursements.

All funds flow through escrow:

• Seller payoff
• Fees
• Reserves

No outside cash. Cash in equals cash out.

Jai Thompson

3RD GRADE SIMPLE SUMMARY

• Park worth: $8M
• You agree: $6.8M
• Lender brings: $1.92M
• Seller gets: $4.88M

You fill lots → income grows

Bank gives bigger loan

👉 You pull out $2.6M

WHAT JUST HAPPENED

You didn’t:

• use your money
• use your credit

You:

• filled empty lots
• increased rent
• used depreciation
• refinanced into millions

Structure over sacrifice. Stewardship over struggle. Every deal builds legacy.