Hello all, I’m in desperate need of advice. Here’s the deal:
I am in escrow on my first park. It’s a very deal, given that it’s in a growing area in the Pac Northwest and clocking in at 9.1% cap, which will go higher once rents are raised to market. Park is on city water, but septic for sewer.
We are days from closing, but last week, one of the septic tanks started overflowing. Looks like the drain field, which is about 10 years old, is saturated.
HOWEVER, the company that installed the drain field a decade ago put in a DIVERTER so that the old field could be used. The managers were unaware of this, and have never used the diverter valve. The company said that they wouldn’t have put in the diverter if they didn’t think the old field could be restored, and surely now, after 10 years, that old field is very likely to be fine and ready for use. Another, unrelated company said the same thing: diverters are great, and SHOULD work. BUT, we won’t know for a couple of weeks.
The seller is balking at waiting another 2 weeks (the deal has already been delayed multiple times) and after all, I said I would buy the park “as is” – barring any catastrophic issues.
So, my questions:
Is anyone out there familiar with diverters, using old fields, etc? How concerned should I be about a park that effectively needs two fields to operate?
The realtor – who is representing us both – suggested a “holdback” at close. Say, $20K would be held back at escrow to go towards any fixes that are deemed necessary, and released after a certain amount of time. Has anyone used these? Thoughts on whether this is a viable option?
Thanks so much in advance!