In small parks, a 50% expense ratio is pretty normal. The standard expense ratio that we see is 43%, but with small parks the few fixed costs (permits, memberships, travel, roto-rooter) aren’t spread around many homes. 50%+ expense ratio is possible in smaller, well-managed parks.
The only other thing that comes to mind with your park is to make sure you don’t overpay. A lot of people right now are so hot for their first park that they overpay a little bit just to make the deal happen. We’re at the top of the market cycle, and just had the first uptick in foreclosures in many years. I would be especially cautious right now and make sure that both you AND the seller are getting a good deal.
If you’d like any help further evaluating the park let me know, I can email you a park valuation spreadsheet that we use or send you our quick and dirty formula that is similar to Franks but a little more conservative. Best of luck. Will