This seems like A good deal...What am I missing?

[Will Gaston]

All:

I've not done any MH investing and wanted to get some feedback on this deal near Columbia, South Carolina.  Seller is old and is looking to get rid of his properties so he can restructure his debt and pay off his primary residence and eventually retire. He personally maintains all of these properties and said he's interesting continuing to be the handyman, if I will agree to it. 12 of the MHs are within one block of each other and the other 7 are on the other side of town.

Properties: 19 Total; (One lot w/ 3 MHs, Two lots w/ 4 each, One lot w/ 1, One lot w/ 9 MHs)

Age:  Almost all are 1960's MHs

Purchase Price: $280,000

Financing: 75% 1st Mortgage (hopefully) from Credit Union of $210k; 5%, 20 Year Am, 5 Yr. Balloon

                  25% 2nd Mortgage seller held 0f 70k; 5%, 20 Year Am, 5 Yr Balloon

Current Rent: $8,900

Est PITI Payment: $3,300

I realize because of the age of the properties, I will get destroyed on maintenance. They've had some septic work and, will verify, but believe all properties are on city water. A few pitfalls that I'm aware of are:

-May have difficulty selling this one day because of the age of the MHs as banks don't like old MHs

-Septic issues

-Maintenance issues (I think having the owner stay on may help this cost)

-Finding an insurer to insure these.

This still seems like a good cash flow deal to me. Anybody have any other things to think about? I believe I have a Credit Union that will finance 75% on it and allow me to have a seller carry the second back. 

Thanks for looking!