[Calc Review] Help me analyze this deal - Mobile Home Park

[Austin Elm]

Hey BiggerPockets,

I'm under contract on a 45 Unit Mobile home park in a small town in Redfield, SD. Population is 2,200. Currently 19 of the 45 spots are filled with tenants. There are 3 park owned homes of the 19.  Purchase price of 450K, terms of 8.25% interest on a 25 year amortization. The mobile home park is on city water, connects to city sewer, and tenants pay all of their utilities, water, electric, garbage, etc.

The value add is to slowly bring in a couple units a year and rent them out or rent to own/owner finance, and bring up rents from $260/unit up to $300/unit. This analysis is based upon all rents at $260/unit and a 52% vacancy factor (understood this is not the actual vacancy, but the rent to own homes bring in additional rent and this makes that vacancy amount correct). Also property is not even on google maps, so value add in advertising lots for rents.

Any advice on this deal? It cash flows good currently and has a lot of upside. Concerns are population size. Any advice for due diligence/inspection items? Any and all comments are appreciated.

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