Input on a Deal Please

Hi All, I am considering a park in Alamance County, NC and would appreciate input from all you wise folks. Here are the details:

70 spaces, 20 lots are rented and are tenant owned homes. 3 homes need rehabbing. Lot rent is about $25 under market.
47 empty lots

Roads are paved.
City water with individual meters but are not being read.
Sewer is private wastewater treatment plant. The tenants are charged $60 for water and sewer.

NOI is about $34,000/year. Asking price is a 7 cap. I offered at 9 cap. Now we are being asked for our best and highest due to alleged multiple offers.

What say this room of great minds? Would you pay for “potential” in a rapidly growing area?

I refuse to think they have multiple offers on that property but maybe.

If I recall correctly, that park was built in the early 90s and they’ve been very slow to fill it. The WWTP I think is the big concern with that property.

We looked at it and passed.

I pay zero for potential…if potential was so amazing they would have done something about it and not let it rot into 25% occupancy.

As no bank will lend on a Park like this, unless they are offering some very attractive owner financing terms I would hold firm and tell them you already gave your best offer - and that it expires in 24 hours.

We passed on that park also. The area rents to low and the demand is negative.