Pay a Premium for my first MHP,?

[Kevin Marrin]

Hi All, I'm about $50,000 away from a take it or leave it ask price by a MHP seller. The park meets all my requirements and has extremely good upside in potential income. I'm hesitant because it's my first deal and have some questions that I hope will help me make a decision on whether I should budge on my valuation or not. I have seen the park twice and have thoroughly researched financials to come to my valuation.

I am trying to hold strong on a 10 cap because the park is in a vacation town and historically is occupied at 70%. How important should the cap rate be?

I have the potential to add water meters and pass through that expense along with city sewer/trash. Should I really pay for all the upside income potential now?

There is about 1 acres of cleared flat land that could be used for boat storage or camp sites etc. Should I consider these additional income streams or any others in my valuation?

Park has frontage on busy road neighboring several national food chains and food stores. Owner claims he was once offered twice the amount by a developer two years ago but turned it down which is why he won't budge on his 8 cap. Should I pay a premium for location, for potential sale of land to a developer in the future?

I'm thinking about submitting some contingencies with my offer. What types of things can I throw out there that create value or save time/money for me as the new owner and effectively bridge the gap?

Thanks for your help!!!

Kevin