I am reviewing a park; that 2 yrs ago the the current owner bought and is now selling.

The lot rent was $265 with 27/35 occupied; 25 TOH 2 POH with rent to own in place. My simple quick calculation-$265 x 27 x 70 = $500k (do not know what the rent-own homes valued) soooo…

But he paid $630k for the park

Sell price today is $740k

Lot rents increased to $300

Same TOH 2 still on rent to own…

Tenants pay all utilities; city/county water and septic

But if I use same calculation $300 x 27x 70 =

$567k plus left over value owed on 2 homes

How do I say that he overplayed 2 yrs ago ( in my opinion )

And it is only worth $65k less than what he paid

What am I missing here

Thanks Rob