I'll keep this short and sweet. Went to see a MHP this morning, got a call from one of my ads, and OH BOY, I have a story to tell.. Met the owner. The guy is literally getting chopped up from diabetes. Leg was just amputated just below hip few weeks ago. Wants all cash, asap to pay off bills, set up some trust accounts and prepay funeral expenses. The reason why I'm telling you all this, is because I asked if he could hold a note (this was before we met) So there's no way this guy can hold a note.

Anyway here are the numbers:

Sale price : 866,000

74 spaces, 48 occupied
• No park owned homes
• Has both City water and sewer which is NOT sub metered
• 10 acres +/-
• Paved streets, off street parking
Rent roll, 48 x $275 x 12 mo. = $158,400
Expenses from what the owner has down is $62,809
.NOI $95,591

Owner showed me past 24 month bank statements. These residents pay on time, this guy from what residents tell me is a tyrant when it comes to lot rent.

OK, now here is the REAL ugly part. The park is HORRENDOUS. Literally its something out of a horror movie. Every single trailer except for 3 are dilapidated, or falling apart in some way. It's like a third world shanty town. Dog and dog **** everywhere, cars parted out and just sitting on the lawns. The street is the original paved street from 1980, When I was there there were a group of ppl ripping apart a trailer for "tonights bonfire" I mean I could go on and on just use your imagination.

So my question is. What would you do? Run, and say thanks but no thanks. Hit em with a way lower price and say get with reality. This place seems like it needs 500k in upgrades. Lets sat he takes a lower price deal, these folks seem pretty happy with how they are living. Spoke with a few, they love the place especially the low lot rent that includes everything. I'm assuming if I start fixing up and the place, and implementing some new rules. 95% of these people will roll on out. Then I have zero income coming in.

Thoughts?

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