Considering buying a Mobile home park

[Kervin Mack]

I have the opportunity to buy my first mobile home park.  It's 59 pads (54 of which are occupied) with all tenant-owned homes.  Rent is currently $275 per month (supposedly).  

It is co-owned by him and his brother.  I have the tax statements from 2020.  The stated combined income is $136,515.  Total reported expenses: $123,556.  I'm pretty sure they run many personal expenses through the business, but I'm most concerned about the top line.

He wants $2 million for it.  (200k down and the rest owner financed at 4.5% interest over 10 years.  

I've never been in this space before.  But the numbers don't seem to make much sense to me.  Any suggestions on what this may REALLY be worth?

[Taylor L.]

I'd suggest you also check out Ekaterina Stepanova's Mobile Home Park group on Facebook. Fantastic community for MHP investors. Does the P&L contain a breakdown of those expenses at all?

What's the utility situation? A lot of older MHPs have serious deferred maintenance on the sewer, so you need to know what you're walking into!

If you look around at comparable parks in the area, what do rents look like?