Mobile Home Park- Is this a good deal? Underestimating Expenses?

[Connor Cogdill]

Asking $600k
11 Spaces All Occupied

8 TOH- $285 per month
3 POH- $1300 (Section 8), $900, $750
Single Story House- $775 monthly
Gross Monthly Income- $6005
Gross $72k

Without Due Diligence-Owners Expenses: Maybe $200 per month insurance, $150 for electricity for the Well Pump, $100 for the Trash bin, Taxes $2400 per year (currently), 
Fixed Expenses= $7800 yearly

Variable Expenses
8% Vacancy-$480
5% Repairs-$300
5% CapEx-$300
=1,080 Variable Expenses Monthly.  $12,960 yearly
I may be way under for expenses, especially with septic.

$72,000-$12,960= NOI $59,040

59,040/600,000=9.84% Cap
 
This park has dirt roads, 3 septic systems,  1 well pump.   

3 miles away two MH parks have city sewer and water. Paved Roads, $600 lot rent. One of the two parks offers free utilities but tenants have to bring their own trailers(It's newly built), The other park has its own trailers $600 lot rent-utilities not included.

I would increase the lot rent up to $400. I would increase all the POH to $1300 rent.
Extra $1,479 a month income from the POHs. Extra $920 from TOHs.
Extra 2,399 per month, $28,788 yearly.

If people moved out could have more Section 8 or veteran tenants. More Maintenance but more cash flow.  

New Estimate:   87,828/600,000=14.6% Cap.   87,828/.0984=$892,560 value at old cap rate.

Would partner with my twin brother. Could I be 4 hours away from an MHP that has septic? My family owns a couple of parks but none with septic before.  My brother would be in the same area of it all the time. I can always drive the next day.  Is this idea realistic?