Hello Everyone,
I need a little help here please:
I have entered into due diligence on a 65 site park. out of the 65 units there are 47 sites paying rent of which 44 are resident owned and 3 are community owned rentals each rental getting approx $250 pad rent plus $175 home rent.
There are 10 vacant sites ready for homes and 7 home sale contracts. Water, sewer and trash are all billed to the tenants from the city and the city as well provides street lights and free snow plowing.
The seller and their realtor didnt mention that the seller wants to keep the 7 home sale contracts. I have not seen the contracts for these 7 home sale contracts but can already see a negative to this equation. I as the new owner of the park would not have any say who the seller brings into the park that purchases his units. One positive note is that if the homes sit empty I can still charge pad rent to the seller. What are the pros and cons of this situation please?