Please help me value this 20 unit MHP with 9 apartment units

[Andy Freeman]

I'm analyzing a MHP deal that consists of 20 park owned units (has two open pads and is licensed for 25 total). The property also has two apartment buildings with a total of 9 units, ranging from three bedroom to single bedroom. The owner/broker is for sure using the rental income from the mobile homes in their calculation of NOI, rather than using just the lot rent. This seems to be common practice, but I know most banks do their calculations much more conservatively, using just the lot rent income in their calculations. I'm curious to see what numbers you come up with based on the following information:

Average Mobile Home Rent: $580 per month ($145 of this is lot rent)

Total Annual Rent: $139,200 ($580 x 20 units x 12 months)

Average Apartment Unit Rent: $600 per month

Total Annual Rent: $64,800 ($600 x 9 units x 12 months)

They are advertising this at a 10% cap rate with 100% occupancy. Average expenses for the last 3 years is approximately $87,000 (includes cleaning, insurance, taxes, repairs, etc.). Rents received last year was $182,184. This property is in the Midwest.

That should be enough info. Any advice for deal analysis assistance would be greatly appreciated.