So according to F&D’s formula (at 12% cap rate) you would get
72 (lots) x $185 (rent per month) x 12 (months) x .7 (profit margin) / 12% (CAP rate) = 70 x monthly gross or $932,400 as you calculated.
However, that formula could be tweaked for this park. For example, you are not going to see a 30% expense ratio (70% profit margin) on such low lot rents.
The homes appear to be encumbered at $12,500 each (approximately). Does the deal include the homes? If you pay $0 for them you’ll still be buying them for $12,500 each (on credit at whatever terms).
Are they worth $12,500 each? Possibly. It’s going to be hard to stay afloat renting them at $215 per month, though.
If this is your first deal, think carefully about how hard it is to manage 72 rentals. There will no doubt be turnover.
I’d certainly skip this one, but your appetite may differ. My two cents.
Even if the homes were privately owned, I would still figure an expense ratio of 50% on a good day and I’d want a higher cap rate.