Apple to Oranges - Office Building vs Mobile Home Park

[Michael Willis]

1) Local Office Building  (option 1)

Hi All, so for the past few months I have been sharing my finds for a 1031 exchange in the NYC metro area. I have found a solid deal on a 16.5k sq. ft occupied office building for 2.4m at about 8% cap with room to improve. However, financing is becoming a challenge and expensive and appears to be eating away at the net proceeds to me. My personal target was with 600k down with 100k/yr to me net post financing costs. That number appears to be closer to +/-75k/yr. 

So I have kept looking.

2) Mobile Home Park (option 2)

After reading up on mobile home parks, I stumbled across one thats 55+ only and 1 hr 15 mins from where I live and appears to be well maintained and is 98% occupied. The park has 56 units (up to 60 approved) 28 homes owned by the park. While lots goes into the analysis for a Mobile Home Park (for which I am less versed - due diligence will flush those issues out) this much I do know.  The park at ask is 11.5% cap with 16% cash on cash return - no bank required, no points or fees but there is a requirement of 900k down. With 900k down the net return after owner financing over 15 years would be +/-150k/yr. Investing 50k more into the remaining vacant pads would lift the net to me post financing to about +/-200k/yr. 

I am leaning towards the mobile home park at this point for ease of purchase, relative proximity, only 1 hr 15 mins away, and return. Those are the facts. Thoughts??

Thanks in advance!