Need help analyzing MHP + Apt deal

[AJ Leman]

Hi all,

I'm looking at a deal right now that has two parts: a 5 plex & 6 plex next to each other, and a 27 lot MHP. Combined NOI is $87,000. The 5 & 6 Plex are pretty standard, all brick, and decent. The buildings are older (1970s) and could be rehabbed to raise rental value. I feel as though I can assess this part of the deal better than the MHP.

The MHP is more complex.  The seller owns 19 of the mobile homes and 8 are owned by the residents.  It is not on city sewer or water.  It has a lagoon for solid waste and a well for water. Asking price is 1.2 million and seller financing could be a possibility. Lot rents are soft and could be bumped $25-$45 dollars in the next year or so.  

How are MHPs appraised? How would a bank value it? NOI seems decent, but is asking price to high? What are the red flags I should look for with the MHP? Any thoughts or help would be appreciated! Thanks!