How would you price this park?

[Abraham Anderson]

I'll have the option to buy the following park:

$300/month lot rent (All resident owned homes)
35 lots
city water/septic sewer
within 5 miles of a Walmart (tenants pay their rent there).
Located in a county of approx. 40K people

The previous owner dealt in all cash, there was no records at all. The current owner (a person who owns several parks that I am working with to turn this park around), paid all cash & plans to renovate/build up records over the next 6-8 months, then it'll be ready for bank financing.

How would you value the above park? What do you think would be a fair price/good deal?

[Aman S.]

Just a high-level estimate : 

Use actual rent. 

So if all lots are rented total yearly rent = 300*12*35=$126,000

Estimated expenses, let's say  35 % of gross rent $44,100

Net Income = $81900

at 10 Cap $819, 000  (Cap rate depends on the area, capital improvements required etc)