Large MH Park possible purchase, need advise please

[Ron Edward]

I could use some good advice from the very knowledgable members of this board.  I found a gem of a MH park that I "might" be able to purchase.  It is 15yrs old, on approx 15 acres of flat land, city water/sewer, very clean and well maintained with wide paved streets.  No MH's owned, lot rentals only.  Of the 66 lots, 9 are currently vacant. Rent is $180 per month and I believe this could easily be bumped up to $200 or more with a new owner. Tenants are responsible for their own yard maintenance. This park is in an area where no more are allowed to be built. Taxes are approx $7k per year and the tax appraised value is approx 1mill. These are the main points that I can gather from the present owner and tax records.  There is an onsite manager but I have a person that could manage this park for $500 a month if that manager does not work out.

This park is owned by an elderly widow who is smart but also very skeptical of anyone trying to buy her business on the cheap.  I heard about this park through word of mouth and that she wanted to sell it about a year ago.  I called her yesterday and she said she didn't want to sell now but I could read between the lines that she might, if the price was right.  During our conversation she said that she has had many people call her from out of state wanting to buy it but "no one had any money to buy it with".  She asked me at one point what I would give for it and I responded that I couldn't make an offer because I didn't know what she charged for rent or the expenses involved.  She told me the rent price and said that it's easy to figure out an offer price by knowing the amount of MH's multipllied by the lot rent!   It was a very strained conversation and I could tell I was treading on thin ice, especially if I said the wrong thing, so there was no way I would dare make her an offer over the phone.  I asked if we could sit down one day and discuss this and she said there was 'no use in that!'  Knowing she would be a hard nut to crack, I politely asked her to keep my phone number and call me back if she decided to sell.  I could tell from our converstation how proud she is of her park and rightfully so.  There are also strong emotional ties as her recently deceased husband was the one who built it.  I informed her that I am local, can look after it, have the money to purchase and am looking to buy an investment property soon.

I would absolutely love to buy this park if the numbers are right and I can convince this lady to sell.  I can, at least, provide a 20% downpayment and my banker is willing to give me a 20yr loan, with the first 2 yrs at a fixed rate of 3.75% and the rest of the term adjustable.  I think he would instead give me a fixed 20yr rate of 4.5% - 5% now, if that would be the better option?  I might be jumping the gun talking financing now as I first need to get a commitment from this owner to sell.

Knowing the above scenario, what strategy would you suggest in trying to purchase this park?  Would you risk making an offer and possibly offending the owner in the process (which seems could easily happen) or would you give it time and hope the owner calls you back one day?  Most importantly, what would you value this park at if you made an offer or if she called you back ready to sell?  Thank you.