MHP Pricing Question

[James Edwards]

Hello,

Looking at making an offer on a property, near as I can tell it is way overvalued.  It is listed for $280,000. It last sold in 2007 for 270,000.  I believe at this point it had another house that was rented as well. 

 It includes land and homes. 

It is 2 parcels, with a shared water meter for everything. On the property are 3 trailer properties two single wides, one newer double wide. There is also an empty spot with all utilities that used to have a home. 

Property also includes a covered/RV hookup spot, a large metal shop building and a car port/garage next to the double wide. 

Properties are all well kept, interior and exterior, and they all have Central Air. 

Current rents are $800 for each of the properties, or $2,250 per month or $27,000 per year. 

Taxes are $2,800 per year for everything. 

Unknown cost on water/sewer/garbage, but I believe those charges are included in rent. 

Potential Positive Changes:

Add cheap home to empty spot, estimated $750 per month rent

Monetize the Large Metal Shop Building through Rent, maybe $200-$400 per month

Monetize the RV spot, $50-$200 per month. 

Should these potential best uses be factored into my calculation? 

Various formulas I see on this forum,(units,x60 or 70x rent)  tells me that the property is valued at around $150,000, to get a 10% cap rate.

Current taxed/Assessed value is around $150-$170k I believe. 

From running a cash flow calculator,  it shows me that $189,000 financed would be around the breakeven point. 

Numbers show a 7% return on cash,if paid for in full. 

What would you consider the value on the property? 

$289,000 seems high, but even $189,000 (projected financed break even point) seems like a slap in the face to the seller. 

Would owner carry terms if available change your thoughts? 

Is there a point at which the listed price, simply means it is only a potential deal for a cash buyer? Even then, $289k seems high when paying with all cash. 

Thanks for your time and help.