Is this list a decent criteria for a starter MHP?

[Gary Dezoysa]

I'm drafting some purchase criteria to send to a few MHP specialist brokers for a good first deal. Here is what I have:

•     Targeting 1 to 6 units with lot rents averaging less than $400 per space
•     Vacancy rate between 65% to 90%
•     Lot rent cap rate is above 10% (actual, not pro-forma)
•     Seller will owner finance with 25% down. 5 year balloon payment to cash him out
•     No geographic preference on where the lot is. A LCOL area is expected though

This is my "initial filter" criteria. I would then grade the MHP based on area/tenant base, look at ownership of roads, metering, and all the other important DD stuff mentioned elsewhere.

I think the above criteria puts my max deal size at around $288,000 or so. Listings trying to add revenues from park owned homes and other sources would ask for more so I might cap the max asking price to $300,000 to help filter them out.

Would you guys add or amend anything on my list or does it look good as is? My goal is to not get wrecked on this first deal, have a decent cash flowing park, and begin the process of accumulating enough cash and equity to get into a bigger one. My end goal is a somewhat modest $4,000/month cash flow.

*PS: I'm out of the country half the year so I don't have any local market advantage.