First MHP purchase, need help with valuation

[Kelly Skeval]

Hello. I’ve been researching MHP investing for awhile now. I’d like to acquire the right park and plan to attend the Mobile Home University bootcamp in May. Until then, I have a park that has sparked my interest and I was hoping to get some feedback from the experts.

23 lots built in mid 70’s Asking price: $475,000

11 tenant owned $315/mo. Last increase Nov 2014

11 rent to own $665/mo

Municipal water and sewer-Tenants pays water

Roads are not paved

Reported expenses $41,556

Seller would like buyer to assume $180,000 loan. If anyone could elaborate on assumptions and wrap loans I’d appreciate that too.

They’ve attached some paperwork that is a bit confusing, assessed value $97,800 in 2009, 2010, and 2011 according to one paper. This same paper reports market value as 111,000 in ’09, $116,000 in ’10 and $97,000 in 2011.

A similar looking paper provided lists assessed value as $190,000 in ’09,’10 and ’11. Market value as $218,000 in ’09, $227,000 in ’10, and $190,000 in ’11.

Why would the market value decrease?

Population is about 6,000

45 miles to closest city of 200,000

45 miles to closest city of 50,000

Median annual income $55,000

Average cost of home around $100,000

Couldn’t find much on rentals found a 1BR for $550 and 3 bedroom townhouse for $750

6 colleges within 30 miles

A casino is being built in a town 15 miles away

Listing agent said to make an offer. Based on what I’ve learned (if I’ve got it right) 11*315*70= 242,550 and value the rent to own homes as about $5,000 each for a total of $55,000 for a total value of $297,550. Did I get this right?

Thoughts and suggestions are very much appreciated. If I’ve left off any important information please let me know and I’ll do my best to provide it.