Thoughts on These Mobile Home Park Numbers

[Kyle Nield]

I recently came across a mobile home park for sale, and just wanted to get a few opinions on my thought process here.  First of all, this would be my first mobile home park.  My brother works in construction just a few miles from the park and would do the maintenance and property management as his part of the investment into the property (would likely do a 50/50 split).   

-Property is on 5.5 acres about 15-20 minute drive from the beach.  

-There are currently 40 lots, 1 mobile home owned by tenant, 11 mobile homes park owned, and 28 are RV lots.  

- The mobile home lots bring in more rent than the RV lots, and since my brother is in construction, the plan would be to over time transition those lots to either mobile homes or tiny homes (my brother has decent experience with tiny homes).

-Asking price is 1.4 mill, CAP rate 12.31%, According to 2020 rent roll rent brought in $205,000, and expenses to operate were $41,000 (included in those expenses were taxes, insurance, garbage, electric, lawn, well permit, water testing, and 5% maintenance factor.

Any thoughts or advice would be very appreciated.  Another concern if this turns out to be a good investment is financing.  I have great credit with a good paying job (above $200,000), and around $150,000 saved up for down payment, but I have a lot of student loan debt (currently my only debt), and I've heard financing for mobile home parks is hard to come by.