MHP Analysis Common Mistakes

[Brett Chupka]

Hi everyone, I only recently started looking into mobile home parks but I've found a deal that has not hit the market yet and it almost seems like it's too good to be true. It's also 10 minutes from the house I grew up in where I still have a ton of connections. 

My question is what are some common miscalculations that you've heard of or done yourself when analyzing a MHP? 

A little background, the park is 20 pads on well water and public sewer. There are 4 financed homes and 2 vacant pads. Numbers are okay as-is. The water and sewer are all baked into the rent right now which is a little below market from what I'm finding. If I metered each pad the property should run with a nice monthly cash flow. I'm finding somewhere near a 10 cap. 

I've got the operating costs from this past year. I don't think on-site management is necessary. The maintenance cost I ran at $12k/yr which I could see being more but doesn't seem like it is wildly off. What else should I be calculating for? 

Any insight would be really appreciated! Thanks.