Would you Overpay for 0% interest & Cash flow?

[Austin Hughes]

I've got another small mobile home park on my hands.       24 spaces.

Seller has an asking price way too high.       BUT he's willing to take $3K/mo payments "until $600K has been paid."      This translates to owner financing at 0% interest.

The park is worth $450K-$550K, but if I financed those numbers, I'd pay WELL more than $600K in total payments.

At $3K/mo payments, it cash flows $1K/mo.        If I sold all the park owned homes, it cash flows $7K/mo (for about 7 years until they're paid off).          Then my pro forma with market lot rent & efficiencies has it back at about $2K/mo cash flow.

I'd have it paid off in under 17 years and cash flow in the mean time.               BUT I'd be overpaying based on commercial value.         Would you do the deal?