Need help valuing overpriced mobile home park

[Alecia Loveless]

I am looking at a small mobile home park I feel is overpriced. I’m hoping people can help me come up with a more appropriate offer price based on the facts I currently have.

The list price is $770,000. There are 22 pads, 19 of which are paying rent, I’m not sure if the 3 are vacant or behind on rent but was told 95% were current on lot rent which is $225. The trailers are owned by the individuals.

There is town water and 11 septics that are 40+ years old. I do have a septic inspector who can inspect them. The road looked good. There is state approval for an additional 8 units. I am estimating the cost to expand would be $150-250,000.

They are claiming a NOI of $41000. What would you offer on this?