How does this make sense? And how to approach to get the deal.

[Jose Lira]

Hi everyone,

So, during my research to get a loan for a MHP that I am looking into, my bank and my insurance company recommended me to gift the MH's in this park to the current tenants and rent the spaces to them so that I save money on foreseeable problems (like repairs) since this property has been neglected for several years. I want to know if this is something that I should or shouldn't do.

The situations is that the MHP is located in a 27 acre space with the option to be subdivided in 88 lots but currently there are only 4 MH's and a single house divided in 2 units in this property. The 4 MH's are in poor shape and they are around 30 to 40 years old. The house is in good condition though and is about the same age. The county has an assessed value on these 4 MH's of about $25 for all of them.

Another situation is that the owner is asking for $650k and is using as comps properties with multi-families on them or mobile home parks with the same acreage. But I think that that number doesn't make sense at all since the MH's are worth nothing but just secure immediate pain, I'd need to demolish some other structures that are in the premises and develop the site since the septic and well is just supporting the current buildings. I've been running comps myself finding properties with the same acreage and a single home on it and got similar properties, very close to the area, in better conditions for just above $130k. Is this the right path of thinking? or what would be the right way to approach to the deal?