Mobile Home Park
Project Overview
This 60 unit mobile home park, situated on a 4 acre lot in Orange County, Florida, was acquired for $3,200,000. The owners invested an additional $100,000 into amenities, improving hookups, and enhancing the infrastructure, which can lead to significant tax savings through cost segregation.
The cost segregation study conducted by Taxero Cost Segregation identified $1,403,836 in assets eligible for accelerated depreciation through reclassifications into 5 and 15-year property categories. This resulted in significant tax savings of $415,535 in the first year, primarily due to 80% bonus depreciation. The benefits of this study extend beyond the initial year, offering tax savings totaling $1,314,748 over a span of 15 years. When these savings are reinvested, they will enable multi-family investors, as well as those in mobile home parks, to acquire additional properties more swiftly, thereby enhancing their returns even further. This illustrates the immense value that cost segregation provides for multi-family and real estate investors alike.
The total yield on depreciable first-year assets achieved through this study was 35.5%, a very satisfactory result that highlights the effectiveness of cost segregation strategies. This outcome is largely attributed to the reallocation of 5-year and 15-year assets within the mobile home park, leading to significant tax savings.
The chart clearly illustrates how a cost segregation strategy accelerates depreciation in the early years of ownership for a mobile home park—showing significantly higher first-year and front-loaded deductions compared to the standard 27.5- or 39-year straight-line method. The visual highlights increased early cash flow, improved tax efficiency, and the power of unlocking hidden value within a property, leading to substantial tax savings. Perfect for demonstrating the immediate financial impact of a cost segregation study at a glance.