Mobile Home Park under contract - need help on due diligence

[John Hyatt]

Hello,

I currently have a Mobile Home Park under contract in Tucson that I believe is a short sale. I have never done due diligence on a commercial property before and this may be a little different since it is a short sale. The listing agent advised me that the seller doesn’t even know the details of the property and then they sent me a one month rent roll (that’s it). I checked the tax records and they are current. Here is the scenario:

We have it under contract for 300k, 44k down and then there is a 256k loan at 6% fixed interest amortized over 20 years with a 3 year balloon (union bank). The listing agent advised that the 44k is to pay closing costs and the extra cash will go to the bank principal which leads me to believe it is a short sale. The bank must qualify me and my business partners in order for the deal to be approved so it’s like an assumable loan attached with a short sale. I feel like there is more information that the listing agent is not telling me, but not sure what to ask as this is my first commercial deal.

Any thoughts? We like the deal because we can get in with little down, just want to get started in investing in mobile home parks.

What should I ask for?

Let’s assume the seller can’t provide info, is that an automatic deal breaker?

Many thanks in advance.

-John