MHP offer how to structure a master lease with option
Small park 22 spaces (16 owner occupied-3 park owned-3 vacant lots) with a 30 space mini storage also. $415k asking price. My offer will be $385K. Owner very motivated as headed towards foreclosure. Says he won't let that happen but don't know what his plans for that are. Property seems generally stable but owner lost his manager last year and he has health problems.
Owner wants to carry paper but needs $100K down to cash out a $72K non assumable loan and $23K in back taxes (4 years). He Will carry at balance @ 4.5%, amort. 25 years, 15 yr balloon.
I have $76K cash for a down. I would like to offer to bring the current taxes up to date, pay down the loan 53K, leaving a balance of 19K on his loan. Then I would lease the property for $3000/mo designating $2000 payments to the loan and $1000 to the seller until loan is paid off (approx. 9 mo) at which time, I would exercise my purchase option on the balance. The $1000/mo to the seller would not go toward the purchase price.
The balance would be the 385-53-23-19=290K.
I am a little hesitant to put so much cash up front with only a lease option agreement to assure the sale after the 9 months. Any help here?
Mark