Raw Land - Purchasing owner financing only

[Jason K.]

Hi all-

I found some land where the seller owns 400 acres that he divided into 40 acre lots, sold and owner-financed to third parties.  This landowner is at retirement age and wants to get out of the real estate business.

The land produces 26k per year income and the financing goes between 10-13 years totaling $335k over the span of the contracts.

I would solely be purchasing the contracts and interest.  I will own zero land at the end of the term (unless 3rd parties default).

That being said, what would be the most I should offer for this?  I was prepared to offer $130k, that would give me a break even of 5 years...  Or is this a bad deal?

Thanks in advanced for anyone's input,

Jason