I have a local park that owner is wanting to retire. It seems way over priced at $250k but what offer should I make? Here are the details. 6 singlewides and 3 doublewides and 1 vacant spot on approximately 1.5 acres. Rents are below market and only 5 units are rented for $2400/month with operating expenses at $681 a month. the other 4 units would rent for about $2k a month. The park is in good condition with paved road and parking. The homes all have new metal roofs or shingles that have been done in the last 4 years. Also it has city water and sewer which is metered separately and paid by tenants.
i would try to get park to at least 10% cap rate or closer to 200k according to your numbers, only offer on lots that are currently rented, not when park is full