When evaluating a rental property, I'm typically looking at the following:Gross annual rent- taxes- insurance- HOA- mortgage, if applicable= "net" annual rentThen, to get to a true cash flow number, you'll also want to subtract the following:- maintenance (~ 5%)- management (~10%)- vacancy (~5%)The bottom number divided by the amount of money you invested to acquire the property will be your annual ROI.

Now subtract off just expenses related to mananaging the lots (not homes) and now you have a appraisal price this is much lower, often dramatically lower.The standard offer is to offer no less than 10 cap, no less than 30% expense ratio and income just from lot rent or the area prevailing lot rent if its a park owned home park.These deals often wast time and due diligence expenses just get get the banks appraisal and it's way (sometimes way way) low.I suggest you re calc the park value based on lot rent, 30% expenses and 11 cap.  

I live just 40 mins away in Allen.Anyway, I found a link for you regarding PMI:http://www.fha.com/fha_requirements_mortgage_insuranceLooks like you'd be paying 1.35% for PMI.For estimating your expenses, I'd just estimate it as if you weren't living there, and then when you have the final number, subtract off the rent for one unit to see how you will do with you living there.That way you'll get a clearer idea of how the property will perform long term, after you've moved out.

Aloha Natasha, Somethings I do when I encounter a situation like this is I just subtract what the back taxes are from the offer and let the customer know that I will be paying that off, when you assume a property, those taxes are assumed by you (normally) but I would find out for sure depending on your state.

Here’s more on why cap rate is nonsense: “Net operating income is determined by subtracting vacancy amount and operating expenses from a property's gross income.

Take 75% of your gross rent and subtract from that your mortgage payments (1st mortg and heloc) and taxes and insurance.

It actually increased the sales price but when we are at the closing table the seller credits and buyer credits will be subtracted from the agreed upon price therefore allowing us to stay at the original sales price.  

The STRESS involved in clearing out that junk should subtract a grand alone from their quote.

It does not take much of a spreadsheet...all you are doing is subtracting last months submeter reading from the current one to get the kwh's used during that period, then multiply that by the cost per kwh for the utility bill to determine the subtenant charge.

Subtract the refi loan from it, and it goes down again.