Updated about 8 years ago on . Most recent reply
Structure of MHP lease option
I’m considering an offer on a MHP. I’m leaning towards a lease option and looking for ideas on how to structure an offer. Owner is very concerned about tax implications and firm on price. Here is what I’m thinking:
Was intending offering a 3-5 year option with owner to finance balance at end of option.
Lease payment would be 80-90% of NOI on current occupied lots.
NOI from new lots filled would be mine.
Not sure how to deal with any capital improvements, was thinking clause to get reimbursed.
At end of option, some portion of lease payments to be applied to down payment. What is reasonable? 25%, 50%, ????