22 Lot park Questions

[Jeff McNutt]

This is my first time looking into a mobile home park.  I have flipped 3 homes and I am closing on my first by and hold next month.  I was hoping for some advise from the community on a mobile home park I am looking at.  Here are the numbers.

5 Acres  in Missouri

22 Lots

13 rented at $260 a month

4 empty lots

3 park owned trailers not occupied

2 abandoned trailers

There is a Laundry mat on site which is not operational (hasn't been for 18 months) and a small 2/1 apt on the back of this building (not being rented)

Asking $250,000  

They say there is a Gross Op income of $43,000, Exp of $21,000, for NOI of $22,000. (I know 13x$260 is not 43,000, not sure what else they are including at this point.)

I feel the asking is too high.  I am thinking closer to $160,000 with these initial numbers.  The 5 trailers not occupied need to be removed (no idea yet on the cost of that).  The county will not allow new pads to be added to open acreage.  Any thoughts on this I now the details are probably too vague.  Typical cap rates in Missouri for trailer court? Costs to remove Trailers? Bring new one in?  Additional Resources I can look into.  I have listened to all the podcast on Mobile home investing twice.  I am trying to become as educated as possible.