Mobile home park opportunity. Is this a good deal?

[Devan Mcclish]

there is a 16 unit mobile home park that I am looking at. They are selling both the land with the mobile homes, and they are asking 590k. Currently they are paying the tenants water and electric bills which totals to approximately 18k a year from what they are telling me on the expense report. I would sub meter each property for both electric and water. at their asking price it is currently at a 10.3 cap. Expenses I am estimating at 50%, is that too high or too low for a mobile home park? Also, I understand that mobile homes are depreciating assets, so is it typical for investors to buy both the land and the homes and rent them out?

Furthermore, the average rent per unit is $630 a month. Each lease varies, and each lease is a week to week lease. In the area where I am located, I can get 6 month to 1 year leases on these homes. But is it typical for week to week leases in mobile home parks? I know I can get each unit to rent between 600-700 a month. I would be able to increase the NOI by decreasing expenses and raising rent

Thoughts on this deal?