MHP Deal Analysis Seeking Review

[Jason Harper]

Hello All!  This is my first post on bigger pockets.  I was wondering if I could get some feedback from seasoned MHP investors on the following potential deal:

21 Owner Occupied Lots @ $225-$235 

5 Rentals Units @ $295-$365

22 Vacant Lots 

1 Stick Built Home Sold on Contract @ $595

Average Monthly Income: ~$7,005 which equates to ~$260 per lot

Gross Income Income: $84,060 

Expenses:

Landscaping / Maintenance: $8,350 (9.93%) 

Insurance (liability only): $250 (0.30%) 

Real Estate Taxes: $8,400 (9.99%) 

Utilities: $2,700 (3.21%)

Administration: $1,800 (2.14%) 

Waste Management: $4,600 (5.47%) 

Total Expenses: $26,100 (31.05%) 

Net Operating Income: $57,960

Assuming a 10% Cap rate the value of this property today would be $579,600. 

The MHP is almost 40 years old and made up of mostly single wide trailers. The MHP has 2 wells and its own septic system. Do you guys see any red flags and what would you offer for such a MHP?