Between riskier duration, inflationary impacts, credit and delinquency risks, and life event related factors, there are many more considerations that would need to be priced into this longer loan. 

My considerations would be 1.  

I’m considering a 1031 exchange and would like feedback from investors who have experience with mobile home parks, particularly smaller, park-owned operations.Current Property (Selling):Duplex purchased in 2021 for approximately $145,000; estimated current value around $210,000\Loan balance: about $90,000Gross rent: $2,400 per monthNOI: approximately $16,000–$18,000 annuallyCash flow after mortgage: around $750–800 per monthLow management requirements and stable tenantsReplacement Property (Under Consideration):Seven-unit mobile home parkAsking price: $395,000Rent: $750 per unit plus $40 for water (total $5,530 per month; $66,360 annually)100% occupied with long-term tenants, several in place four to five yearsAll homes are park-owned, purchased between 2016–2018 with metal roofs and Hardie sidingOwner pays water and sewer (aerobic septic); tenants pay electric and trashMaintenance handled by one individual for $400 per month using personal equipmentGravel road, well maintained; potential to add one or two additional homesMy Pro Forma:Vacancy: 5%Expenses: approximately 40% of effective gross income (includes water, insurance, taxes, maintenance, mowing, etc.)Estimated NOI: $37,800Financing assumption: $255,000 loan at 8% interest, 25-year termAnnual debt service: approximately $23,574Projected cash flow: about $14,250 annually ($1,188 per month)Cap rate: approximately 9.6%Cash-on-cash return: around 10% on $140,000 downDSCR: 1.6 (strong coverage)If the price can be negotiated to the $360,000–$370,000 range, the cash-on-cash return improves to roughly 11–12%.Pros:Consistent, well-maintained units with matching exteriors.

I would recommend increasing your income if you have a w-2 job.

Inflation is continually increasing prices.

Next step: confirm ARV and realistic rent for 77048, tighten the rehab to only what increases rent and safety, and line up a lender term sheet for both the rehab loan and the refi before you start.

This also means you can strategically time the study based on your tax planning needs and cash flow considerations, making it a more manageable process that fits your business timeline rather than being forced by an arbitrary calendar deadline.

The offer is always going to be lower than asking price, sometimes considerably lower, but you also don't want to be insulting and throw out a super lowball offer.

 $100 rent increase is $1200.  

I agree there is a considerable risk whether the GP will be able to complete construction, achieve target tenancy/rates and exit in two years.