Questions before making offers

I know a little about investing, but I must admit I am a rookie when it comes to MHP investing. It does seem to have a lot in common with commercial RE investing though.

So as I am learning, it seems that there are three main types of parks and of course several hybrids.

It seems you teach to split these up and investigate them as separate businesses. Sounds sensible.

So the first kind is the simplest.

Parks that strictly rent space to private owners.

These seem much like storage unit investing. You confirm accurate income figures,and accurate expenses and calculate in any repairs and overdue maintenence.

You calculate a NOI and you make an offer that will make you a positive cash flow after you become the owner.

These kind of deals should have the least amount of maintenence, management headaches and insurance right?

What kind of cap rates are likely to be safe? Surely not 10% like most realtors believe?

The next kind has park owned homes that are strictly rented.

I suspect these have far higher turnover and vacancies and repairs and maintenance and insurance and other management hassles.

But surely those are built into the ROI calculations, or do you put in an additional hassle factor when you make an offer?

What is your rule of thumb?

Then there are parks with park owned homes that the previous owner tried to sell to tenants with various levels of owner financing or lease options. I would guess these are way more difficult and way more complex to make offers on because of all the shades of grey. I do get that if done properly it can be very lucrative to lease option the same home over and over and just keep collecting the downpayments and rent and hoping that “owners” will hassle you less about repairs than renters… but is that true?

Especially in the coming difficult times when millions are going to lose their jobs and industries and agriculture is going to cut back on labor expenses.

So I understand you calculate how much the park is worth based in confirmed regular lot rent. Then you make a separate calculation on how much income you get from pure rentals that are never likely to exercise their option to purchase, and then you calculate separately how much if anything you are willing to pay for partially sold units as a completely separate business right? Surely if these contracts are not set up correctly you can have an alligator here that can eat up all the other legitimate profits? Should you have these guys sign lot rental agreements with you and just keep negotiating their purchase contracts with the previous owner?

Do you avoid these? Do you make just way way lowball offers on these so you cannot lose? (I bet these are the most motivated sellers)

Thanks for your input.