Quick deal analysis - what do you think?

​Asking price $1.425K
24 x $358
7 x $390
1 x $458
3 x $358 empty
No park owned units
Current cap 6.21%
asking price seems a little high to me. there are more expense numbers in the packet that I am questioning and will need clarification. According to my calculation the expenses are around 58%

The price is clearly too high at $1.425 million, as the total revenue is $138,249 which, if you capped that without subtracting any expenses at all, it’s only about a 9% cap rate. Since we are advocates of buying at 10% cap rates of NET income, then paying 9% cap rate of TOTAL income is way out of line. The expense ratio of a park like this is roughly 40%. As a result, I’m thinking this park is worth around $800,000 or so.


Thank you very much Frank!