Mobile Home Park Purchase, Good Deal?

[Louis Cavallaro]

Hey everyone, I've been on this site countless times and have come across great information so I have finally joined up. As I mention in my "about me" section I'm new to real estate but had done quite a bit of research into buying a multi unit home with 25% down. I've since become more interested in obtaining a commercial loan with 70% non-bank lender, 20% seller carryback, and 10% down payment. I  figure if all works out my capital could do more for me this way. 

If you wouldn't mind giving me your opinions or advice on what to look into further, below is the current property/situation I've been interested in:

Park with an asking price of 800k

42 of 48 units occupied, Road is paved, units skirted

All units owner occupied, ave $300/unit

About 140k income with 35% expenses of about 50k

The realtor provides an Income/Expense NOI as 90k. (The mortgage broker I've been working with had me divide 90,000/.1 to get 900k. He says this is how the lenders would come to the value that they will provide up to 70% of.)

Positives:

Seemingly good cash flow 

Some room to improve occupancy while still being okay if I can't fill the last 6 plots

Seller willing to finance 75% at lower rate than non-bank lenders (I would only have 10% to put down here though so would still probably need to go with non-bank lender 70% and seller carryback 20%

Included in expenses is park manager (who is Certified WW and WS operator) and office manager

Realtor says fracking in the area is bringing more people who will need somewhere to live but I couldn't verify this anywhere online so I took it with a grain of salt

Apparent reason they are selling is because the park was inherited

Concerns:

Park is 40 years old and has private sewer and water system (about 10% of expenses go to this including the manager)

Park is in town with population of only 6k. About 20 miles (20 minute drive) of the county seat with population of 20k (large enough for a Wal-Mart). 20 minutes from another town with 20k population. Too far from too small of towns?

Seemingly great cash flow, self-managed and the seller is willing to finance up to 75%... Too good to be true? Why wouldn't they just hold on to it and keep collecting?

*Obviously I would need to confirm the given numbers, but assuming they're accurate any advice you could give a first time MHP buyer? Anything else to consider?

I had a couple other questions/concerns and I'm sure some more details I can give, but I have a flight to catch at the crack of dawn. I will be out of the country for the next week on business so thank you in advance to anyone who can send any advice my way. Hopefully I can access the forum while abroad!

Louis