Rock Hill Investments Inc.": Trailer Term Paper

Total Length: 1867 words ( 6 double-spaced pages)

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Jasper County has a relatively low unemployment rate and high average wage rate, particularly for this region of the country.

Revenue stream will allow for investments in further upgrades and purchase of new mobile home units, thereby making the property even more marketable as an upscale mobile home community.

Currently, mobile home parks account for 79% of "sunbirds" who winter in Texas, making Rock Hill an ideal locale (Blais, 2002). In fact, although occupancy rates in Texas mobile home parks were down one percent from the 93% rate in 2000, the total number of such sites increased by more than 7,000 over those two years (Blais, 2002).

Threats:

Unforeseen downturns in local economy due to plant closures or other major layoffs.

Relative low barriers to entry for competitors.

Financial Statements.

A proforma financial statement for Rock Hill's first five years is provided in Table 2 and graphically illustrated in Figures 2 and 3 below.

Table 2.

Financial Proformas for Rock Hill Investment (best case scenario).

Cash Flow

Year 1

Year 2 Year 3

Year 4

Year 5

Opening cash balance

Cash inflows

Capital funds

Total cash inflows

Cash outflows

Purchase of mobile home units*

Maintenance

Research and development

Training

Marketing budget

State income tax

License fees

Total cash outflows

Net cash flow

Closing cash balance

Timely opportunities for purchase decisions concerning new vs. used mobile homes will affect these figures and the return on such investments.

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Figure 2. Total cash inflows: Years 1 through 5 for Rock Hill Investments.

Figure 3. Total cash outflow and net cash flow: Years 1 through 5 for Rock Hill Investments.

Conclusion

The research clearly showed that mobile home communities remain a popular alternative for many people across the country, and Jasper County, Texas is no exception. The relatively low unemployment rate and high average wage rates for this county also suggest that occupancy rates for Rock Hill will quickly approach 100% and will remain that way assuming appropriate investments and upgrades in the community continue to be made. While there were a number of unknowns involved in the foregoing analysis, the research indicated that a $100,000 investment today will reap major dividends in the years to come, and Rock Hill….....

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Latest APA Format (6th edition)

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"Rock Hill Investments Inc Trailer" (2007, June 18) Retrieved May 18, 2024, from
https://www.aceyourpaper.com/essays/rock-hill-investments-inc-trailer-37114

Latest MLA Format (8th edition)

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"Rock Hill Investments Inc Trailer" 18 June 2007. Web.18 May. 2024. <
https://www.aceyourpaper.com/essays/rock-hill-investments-inc-trailer-37114>

Latest Chicago Format (16th edition)

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"Rock Hill Investments Inc Trailer", 18 June 2007, Accessed.18 May. 2024,
https://www.aceyourpaper.com/essays/rock-hill-investments-inc-trailer-37114