What should I offer on this mobile home park in Maine?

[John West]

I have had my eye on a mobile home park here in Maine. Finally a few days ago I decided to look up the owner via tax records and gave him a call. Turns out, he was thinking about selling, but hadn't had a chance to list it yet. I am meeting with him next week. I received some initial information from him, but we are going to discuss price and other questions I have then.

Here is what I know:

20 pad site

9 lots rented (8 lot rent only, 1 park owned)

city water and sewer (a rare find for rural Maine)

lot rent is $250

Water is not separately metered, but is split evenly among the tenants

Yes, vacancy of pads is high, but I think over time I could fill these. Marketing around here is not good. There are three MHPs in this town all about the same size (though the other two are full). You can't find a phone number on google for any of them, let alone a website. One of the other parks charges $295 for lot rent, the other I cannot find info on. 

I've listened to Jefferson Lilly and Brad Johnson's Park Street Partners podcast and received some great tips. He did a quick evaluation of what a park is worth by considering a 40% expense rate and a 12% cap yielding an offer price of $135,000 (27,000 lot rent only *.6/.12)

Any thoughts? Is this a fair price to offer?