I am currently in the exam period for my first park purchase and have uncovered some due diligence items which could affect the value (and purchase price) of the park.
First, the rent roll provided and attached to our purchase agreement shows 3 of 21 vacant mobiles, but as of 2 days ago there are 5 vacant homes. In addition, 1 of the homes was completed trashed by the vacating tenant, electrical boxes destroyed, siding and insulation ripped out, etc so that home is a total repo job.
Also, there appears to be a large amount of deferred maintenance including major tree trimming issues (large oaks, multiple dead trees within 10 feet of homes), and septic systems not updated or maintained, causing backups in tenant-owned homes.
Also, the property comes with a SFR (3 bed) which has mold (previously undisclosed by seller or broker) and the rent for the SFR (over 500.00 per month) is multiple months delinquent. This makes me question if I was provided a false rent roll.
Should I recreate the value of the park based on current occupancy numbers, while subtracting the major maintenance costs (tree trim, septic maintenance) and ask the broker to modify the purchase agreement?
I am still in the exam/due diligence period so we can walk away, but I am unsure how to approach a renegotiation of the purchase price at this stage.
Thanks all, love the knowledge and info in this forum.