MHP Deal Evaluation Help. 7 CAP for MHPs?

[Jon Dorsey]

Looking at a deal in northern FL, bigger city.

NOI 98k

Lots 42

POH 13 (1 vacant) ($450-650)

TOH 25 ($300-325) [at market]

Individually metered 

Asking is $1.4M. 

Recent comps are at 7 CAP but that seems like it's overpriced. It's a 3 Star Park, 55+ community.

I’m looking at more of a $1.29M figure. Is that too much? 

I would be utilizing bank financing so with debt service of $75k annually, is it worth the $10-15k at the end of the year$