Valuing a Mobile Home Park purchase based solely on Rental Income

[Reid Hanley]

I need some input from all you BP MHP Pros! 

I met with a seller yesterday who has an 81 unit all POH Park for sale based on a 7x multiplier of his annual rental income.  Would anyone here buy an all POH MHP based solely on a rental income multiplier?   In my mind POH parks are worth the value of the land + the value of the homes + some consideration for the amount of income they produce.   But I know businesses are often sold on a 5-8x multiplier of gross sales, which basically is what rental income is to MHP.  If all valuation factors are in the normal range (ie. Expenses 30%, Rent rates at market value,...etc.) is a 7x income multiplier reasonable for a MHP?