What do you think of these numbers

[Chris Kane]

I have identified a 6 unit mobile home park sitting on 4 individual lots in a gentrifying area. Lot's of new townhomes and apartments are being built on the surrounding streets. 1,600 sf townhomes are selling for $285,0000. Three of the lots are large enough to do a simple lot split with the city. So the big payout would come from scrapping the mobile homes and building town homes. The lots are zoned for this type of building already. The owner will allow me to scrape and build on one lot at a time while he is financing. 

Any advise or thoughts on this deal would be appreciated. 

The owner will finance on the following terms:

Purchase price - $275,000

Interest Rate - 6%

Terms - 30 year amortization, 10 year balloon

Taxes per year - $3500

Expenses per year - $2,500

Current Monthly Rent - $3,000

Cash Flow $1,250/mo