Mobile Home Park Evaluation ?'s (hypothetical)

[Cooper P.]

Hello everybody.  First time poster looking for some help.  I find it is much easier to learn from examples, so I've tried to put together my own MHP scenario.  Would greatly appreciate any responses (questions at bottom).  Thanks in Advance.

MHP Price - $450,000

Size – 4.2 acres

# of lots – 30

Lot rent - $175

Occupancy – 90% (27 of 30)

Year Built – 1985

Water and Sewar – City (Water paid by tenants)

Park Owned Homes – 8 @$350/mo avg (6 single/2 double wides)

So running my made up numbers, I get….

Gross Income – $73,500

Operating Expenses - $32,500 (44%...Includes onsite manager)

Net Operating Income – $40,000

Other Info – Park rents are on par with other similar parks in area.

So my questions…

What details am I missing?

How would you value this park off of the given numbers?

How did you come up with the evaluation, and what do numbers in equation mean?

How much of a down payment would I need for a bank loan?

How are normal MHP loans worked(length,rate,etc..)?

What would a bank’s criteria be for approving me for the loan?

Should I go another route for loan? With who?

If I don’t have enough for down payment, are there other ways of getting dp and still making deal worthwhile?

I know I’m asking a lot, but any help would be greatly appreciated.  Also, if there are other questions that I should be asking feel free to include.  Thanks.