Question re Commercial Lenders and Mobile Home Parks

I am negotiating the purchase of a mobile home park. The purchase price is “$500,000”. The bank is requiring an 80% loan- to-value ratio. Also, the broker indicated that the bank generally passess on anything below an 8.5% cap. The lot rents alone will not support the required cap rate, but notes held by the seller on homes he has sold over the years raises the cap rate to over 11%.


  1. If the owner finances $100,000 of the purchase (say at 6% over 8 years), will a bank consider this $100,00 equity for purposes of the 80% loan to value?

  2. How much, if at all, will a bank consider income generated from the notes?

  3. Unrelated to the above questions, to what extent, if any, will banks look at the land acerage or the potential for alternative uses (e.g., 7 acres in an up-and-coming commercial/residential area)? That is, can “good” land justify a lower cap rate?

I look forward to your response and sincere thanks in advance for your advice.