Nearly empty mobile home park. Suggestions and advise?

[Adam Feick]

Let me start by saying I have not visited the property yet, I'll be doing that in the next week or so.

Here are the property details.  

LOCATION

Midwestern city of 140,000, within a mile of a military base and university (17,000 enrolled).  

INCOME

2 stick built homes - currently rented ( total monthly rent $1,170)

2 tenant owned mobile homes @ lot rent $275 each ( monthly $550)

3 park owned homes, vacant and haven't been rented for 2 years.  Broker says need work, I'll assume the worst - that they need completely rebuilt or replaced.  These were being rented for $500~550 each.

14 empty pads.  From google maps pictures (2015) there were 5 additional homes that have been moved or torn down.

EXPENSES

Stick built homes pay for all utilities.

Park owner pays for water/sewer of mobile homes.

Property taxes $2,000 yearly (166.67/mo.)

Water/sewer, Trash, landscape, snow removal, etc monthly average $350

There are additional misc expenses roughly $40/mo.

Asking price $65k (15 yr mortgage about $400/mo.)

Insurance unsure yet.  

As it sits now I think it cash flows $250ish/mo after considering vacancy and capex.  Not good.  

However pending the condition of park owned mobile homes and existing pads/utilities I think this has a lot of upside due to location and a growing city.  I have personal finances in place to upgrade the park owned homes or replace them and would plan on adding a few new homes in the next year.

Sorry for the long post.  Would really like to hear your thoughts and opinions.  What am I missing or should I be wary of.

Thanks.

[Anthony McEvoy]

@Adam Feick: Has it ever been filled? Has any marketing been done to try and attract more people? If the vacancy is high enough... can it be redeveloped?