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GRAND RAPIDS, Mich. (WOOD) — A new property acquisition is helping a West Michigan nonprofit continue its fight against homelessness in the community.
Putting an end to homelessness is the mission of Family Promise of West Michigan.
“There’s families you see all over town and you don’t realize the need that they have, in terms of their housing insecurity,” said Lisa Valk, Chief Operating Officer at Family Promise of West Michigan. “We want every family, every child in our community to go from insecurely housed to securely housed.”
One of the nonprofit’s programs, Partners in Housing, allows Family Promise to rehab manufactured homes. They...
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So the non-profit spent $7 million cash for two mobile home parks with the intention of using the cash flow to buy more parks. Knowing how the world works, I’m assuming the non-profit bought these for a 5% cap rate and the two properties have an EBITDA of maybe $350,000 per year. That’s if they collected the rent and knew how to run a park, which they don’t. So the EBITDA may be more like $175,000 per year. And that means they will be able to buy a new park about every 20 years or so. Not exactly the potent force in housing they are claiming. Seen it all before.

