REI Opportunity - Eminent Domian

[Jeremy Shepherd]

Interested in feedback about a potential opportunity. I've been speaking to a seller about a piece of property with two SFH, two storage style buildings that could be rented, and it has 12 full hookups for campers (RV's) which out-of-town workers are occupying situated on three acres of land. Seller will finance at $1K/month @ 4% until paid off. Asking price is $250K. Location is WV.

Currently:

1 SFH rented @ $1200/month less $300/month utilities

1 SFH rented @ $600/month less $200/month utilities

7 of 12 camper spots rented @ $400/month less $100/month utilities

Storage building vacant

Currently Totaling: $4600 ($1200)=$3400/month

At capacity: $6600 ($1700)=$4900/month

Yearly property taxes: $1300/year

Insurance approx: $900/yr

This would be my third investment property. One thing that is keeping me from doing the deal is the potential of a highway that is being expanded and is rumored to be headed in the direction of the property. Fair market value is hard to calculate in this area because of lack of comps in the area. I’m afraid the state will take the land by eminent domain and may not pay near what I paid. Anyone have experience with being bought out by your state or eminent domain?

Seller stated he is selling because he has other properties and can’t keep up with all of them due to getting older and health reasons. He has also received money from leasing and drilling of natural gas and doesn’t need the property for income any longer.

Interested in feedback from others with more experience than I. And no I am not interested in this property because I think the state will buy it.