We are looking at a park that came into our pipeline that is far from what we are looking for and I wanted to get some opinions from the forum. This is a Mom & Pop deal where Pop died a few years ago and Mom & Daughter have no clue on how to be landlords. They are basically desperate to put it behind them. It consists of 2 small parks that are within about a mile of one another. The metro area is very good and both parks seem to have fairly good locations.
Occ: 23 (all tenant owned)
Lot Rent: $75
Vacant small 2 unit commercial bldg
Lot Rent: $75
2 Rented SFHs at $450/mo
Both parks have access to city water/sewer at the street. Another slightly redeeming thing is that Pop was a professional septic installer. Market rents in this area run between $200-$250. One of the largely damaging things about this park is that since Mom & Daughter took over, mostly everyone has decided to stop paying.
My initial offer was accepted over the phone (to my surprise) at $225k, 5-10% down, interest only for some period of years (yet to be determined), fully ammotized over 25-30, 5% interest. The seller and I have set a day to meet next week and she will be signing the contract then. My question is this. On the front end, would this deal excite anyone enough to tie it up and start the diligence process on it?