Is This Mobile Home Park a Deal?

[David Mathews]

I found a deal on a small 7 space MHP in seemingly great condition but mostly vacant and curious to get someone with experience take on the situation.

I found this park by responding to a post for a mobile home park vacancy on a local Facebook buy, sale, trade site. I messaged the person listing the vacancy and asked if they have considered selling the park. To my surprise the owner of 30 years said yes he is retiring and would like to sell but he hasn't attempted to yet. I stopped by the park and snooped around a bit. It appears to be in excellent shape. Full concrete pads for the mobile homes, also wired for the possibility of RVs, manicured corner lot in a residential neighborhood with several new construction brick homes for sale.

My concern was that this park is completely vacant with the exception of two Park owned mobile homes that he is receiving $550 per month rent. In his listing he was asking for $350 per month space rental which seems to be in line with most of the area. When asked why so many vacancies he replied that he just hasn't tried very hard to fill them and has lost interest. He said it has been a trouble-free park for the entire time he has owned it and looking at the infrastructure I do believe it to be true. I also believe that I can get it filled with no problem just by comparing the location and condition to others in the area.

The owner said he will take $150,000 for this 7 lot Park and he is not open to negotiation. He also said he is not open to owner financing. Without verifying and just going by his word he said taxes run around $2,000 a year.

So.... hopefully someone with experience can help me determine if this is the great deal that I perceive it to be and also would this be worth doing as a no-money-down deal as I can quite possibly get the down payment funded through a private lender. My concern is what the bank will require since there is so much vacancy.

Any info, suggestions, advice is appreciated.

Thank you in advance.