First Mobile Home Park - Fair Purchase Price? 28/33 pads rented @$140 monthly

[Michael Lyons]

I have located a mobile home park in a rural area, approximately 45 minutes east of a major city.   My brother and I are looking to go into this together.  He is 45 minutes away from the property and I am 4 hours away.  The property has 33 pads.  They are all on city water, gas, electric and sewer. 27 of these are occupied (renting the dirt/pad only) and the one park owned home is rented for a total of 29 tenants.  Rent is $140 monthly for the pads and $325 monthly for the home that is park owned.  Tenants are required to cut their own lawns and maintain the yards.  The utilities are underground.  The only infrastructure is an ashpalt road that runs through the property in fair shape.  There are a few trees remaining on the property.  The owner developed the park 40 years ago and lives 10 miles down the road. He does the maintenance on the property (mainly snow plowing he says).  Tenants are on a month to month agreement.  If we have expenses of $1,500 yearly for insurance, $4,000 in maintenance (my estimate for hiring someone to do the plowing and salting with some other room for more maintenance costs), monthly rents of $4,105 (or $49,260 yearly), plus an additional $1,500 in administration costs, what is a fair sales price for the property?   There is room to develop 2-3 more pads (with substantial costs for taking trees down and building the pads).  I don't think the owner has advertised any of the vacant pads as he is near retirement and owns the property without any debt.  What should we offer?   Seller financing may be possible but unknown at this point.  Thanks in advance!

Cash Flow: $49,260

Expenses: $7,000 ($1,500+$4,000+$1,500)

NOI: $42,260