Need advise on trailer park investment

[Bulent Gurcan]

I came across a trailer park investment idea and I need your input to see if it makes sense. 1.2 acres valued by the city at $125K there are 19 trailers on this property in which 2 trailers belongs to the park (paying rent and payment for the trailer) and being sold to the renters at this moment. Park makes $57K a year and the owner says $15K of expenses a year to maintain the park (he pays water/sewage, property tax and clean up) . Asking price is $300K which includes the property, two trailers and the business. Now from my calculations (please correct me if I am wrong) $50K down $250K financed at 7% which gives less than $1700 a month payment. $57K makes roughly $4600 a month income minus $1700 payment and $1300 for the expenses total expenses $3K. From here there is about $1600 a month net profit is obtained. Now the real question is, if it is worth $300K. I was told that if something happens and you lose all the tenants you have a $250K loan with a $125K property. However I don’t think people will get up and move a trailer which costs thousands of dollars and leave especially if the rent is not been increased. These tenants have been living here long time. It seems like a good deal please give me your input about this investment opportunity. I am new to investment and I don’t know if I am missing anything or not adding.

Price $300K
$50 K down $250K financed @7% 30 yr = 1700 month
Expenses $1700 + 1300 =$3K
Income $57K - $36K expenses = $21K net income /yr