OK, let’s break this into the different issues to consider.The “5 pending sale” concerns me because of SAFE Act implications. Under the SAFE Act, you cannot sell and carry paper, only sell for cash or rent. If the seller does this, then I guess it’s his problem, but if you don’t want to become SAFE Act licensed, you cannot continue with what he’s doing on that front.It’s a given that, of the 18 sales contract, at least 25%+ are going to default in the near future. The normal metric on this would be sell 18, get 9 back, sell 9, get 4 back, sell 4, get 2 back, sell 2 get 1 back, sell 1. You are going to be in the home business for a long time. As a result, you have to be able to handle the financial needs of renovating and renting/selling the homes through multiple “churns”.On the good side, if you do a test ad and know the demand is there, getting the homes out the door will not be hard. Plus, they won’t be moved out, since you are the repo company.So the value of this deal is basically 42 x lot rent x 12 x .6 x 10 = ? plus the value of the homes, which must include an allowance for all of the “churn” activity ahead.I don’t know that I would consider this deal a “time bomb” but it will be a pain, no question about it.On the 5 vacant homes, no way you can do a 1 year lot rent guarantee. This is an old scam, in which the seller offers you one year but you pay him seven (based on a 10 cap). If those homes are vacant, then those lots are worth -0- or maybe 50% of value, since you can only pay for what is on the ground right then, not a future fantasy. You cannot let him “bond around” the present value.