Have you verified that this is a legally operating park ? 

Operate from there, then move to the next higher cost of money source and go up the ladder as you need to, then payoff obligations going down that same ladder. 

Thanks guys, just wasn't sure how the big banks operate.

Determin net operating income (NOI). 4.

There will of course be expenses which will inevitably reduce this 12% annual gross income figure down to 6-7% most likely (cap rate - net operating income/price+cost).so to get your 10-12% cap youd have to have an annual gross of 18-20% which means 1.5-1.70% monthly gross income to sales price+ rehab cost, unless if you drove down from redmond to tacoma and did your own management, repairs, lawn care, etc.

Sherwin, if you have 3 units at 700 each, assuming 50% of gross income goes to expenses, that means a net operating income (NOI) of 12,600.

If there are you might not attract quality tenants as you cannot control how other landlords operate around you which is why I want full control of a development.

@David HuynhIf you are looking to finance a real-estate operating company using retirement funds explore the ROBS 401k as it will allow you fund your own business tax and penalty free using retirement funds. 

Data at rest in any store-forward operation is a real problem. 

I have run the numbers via Rental Property Calculator on BP and here they are:Purchase Price: $460,000.00Monthly Income:$4,200.00Monthly Expenses:$3,593.20Monthly Cashflow:$606.80Pro Forma Cap Rate:5.93%NOI:$27,952.00Total Cash Needed:$126,000.00Cash on Cash ROI:5.78%Purchase Cap Rate:6.08%Total Monthly operating expenses:Vacancy:$294.00Repairs:$210.00Water:$100.00Sewage:$100.00Insurance:$150.00P&I:$1,722.53Property Taxes:$916.67Misc:$100.00Please let me know if I am crazy to do this deal.