Mobile Home Park Valuation please advise

[Shawn S.]

I am looking at a mobile home park with the following:

42 lots in all- 34 lot rent only, 8 park owned (only vacancy is 1 park owned home getting ready for a new tenant)

-Double wide lot fee is 225/month

-Singlewide lot fee 210/month

-City water to park (private individual meters) each tenant is responsible for paying water they-

-On septic

-Lots are mowed by tenants

-Trash paid by tenants

Brings in 155,000 per year gross, net is around 132,000 but is being self managed

expenses: taxes 2,000, insurance 1,000, gravel for roads 1200, septic tanks 2,000, park owned home maintenance 7,000, misc expense  5,000 (mowers, mailbox, other misc expense)

Currently there is no property manager

Adding in the cost of a property manager at 10% of gross is 15,000

Adding in the cost of lawn service for the common area is 3,000

Adding in the cost of a 10% vacancy is 15,000

Underwriting at 100,000 NOI 12.5 cap at 800,000

-12 acres

-4+ acres of flatland not being used ( ability to add around 6 more units)

-clean and well kept

-Main Road is paved with some speed bumps. side roads are gravel

-3 singlewides come with the property. Rent for singlewides is: 650/mo, 450/mo, 500/mo.

-5 doublewides come with the sale of the property ( 3 on foundations) Rent for doublewides is: 800/mo, 800/mo, 650/mo, 600/mo, 700/mo

-30 singlewides

-12 doublewides (5 of which are on a permanent block foundation)

Most lot rent only homes are 1990-2002

Most Park owned homes are  1995-2002

I put a value of 10,000 each on the singlewides

I put a value of 20,000 each on the doublewides

Please help me determine a valuation for this property.  I am wanting to offer around 800,000.  Please let me know of any downside or inaccuracies that you see above. 

I am somewhat concerned about the private water meters and the septic but don't think it is a deal breaker.

Thanks in advance for your responses