mobile home parks good deal bad deal
I found a small 6 unit mobile home park for sale in my area (D+ C-) they rent for a combined 4,800 a month. Tennants are set up on a 6 month lease and pay by the week. There is a 200 per month allowance for utilities and trash removal cost. 4 of the 6 units are pretty old. I have not seen the owners cost of doing business yet. My research yields 400 per month ins cost including 2 million general liability. The sale price is 145K (29k down) by my calc, thanks to BP is: 27% ROI; 731 CF; 14.15 Cap rate. I calculated 30% on the expenses 1440 per month (matainenace and repairs, cap exp, vacancy).
Good deal or a bad deal? Is there anything that I am forgetting? Being it is 6 mobile homes does that throw it into a commercial loan, or different set of circumstances that I sholud be aware of... and if so what are the ramifications compared to SFR?
Thank you, Tim