First things first:
What is the current NOI?
What is YOUR projected NOI?
How much will that process cost?
How long will that take?
What else could you do in the meantime on another MHP? (HABU)
Now onto your post ---
The numbers don't work at $700k.
Not even close.
BTW - the county numbers are solely for taxing purposes, and have little to do with the actual market value.
Even creative financing won't solve the problem of a ludicrous price.
The seller is wanting out of the management side so bad that they are willing to give major concessions to a turn-around entrepreneur -- like you.
A master lease CAN solve many of the problems in this situation, the owners must give up total control so you can make the changes necessary.
What's in it for you?
Well -- what do you want? Cash flow seems to be the only benefit worth it because, at the price you mention, unless I missed something, there is ZERO equity.
Let the seller dream of equity while you work and establish the reason most of us get into this asset class -- cash flow.
A master lease with an option at the same monthly amount they are netting now might wet their appetite for getting out of management. Now the issue becomes what option price will they ok?
Who knows. But whether you close on the option or not is almost a moot point. You are getting into this for the cash flow. If you are able to exercise your option, you'd only do so at a value that buys you equity. Not to pay full price just to say you bought it.
A formula could work here.
You could state in your option that you may exercise your right to purchase under the following conditions:
Purchase price to be at XX cap rate based on the previous 2 years of actual NOI.
Seller to carry the note for XX years at XX interest rate. Buyer to put XX down.
Bottom line: a low master lease figure and a higher option price may entice them to give you the right to control the property.
Make sure your lease gives you enough time to execute your plan. 1 to 3 years just isn't enough. In fact, if you can get 10+ years, you have defacto ownership. But not legal ownership.
For an actual contract template, well that's practicing law without a license.
Keep us posted,