Trying to decide how to make an offer on park. Park is in perfect condition, 8 POH and two empty spaces with utilities in place. 24 by 38 metal; shop building on slab. all utilities paid by tenants. Haven’t seen actual finances yet, but here is what owner claims:
average rent $650
Gross income 64,000
operating expenses $7,000 (owner lives in park and does all work)
Expense ratio 10.9% (yes, this is a bogus number)
Cap rate 10.9 (also bad number because he is including rent from mobiles)
The guy is hung up on a sales price of $537,000 which is nowhere near reality
He will finance with 20% down, which is great.
Not much information, but how would you proceed? Just curious how others would approach this.