This is a classic pre-probate, distress sale situation.There may be a number of hurdles that could pose challenges.One is a lack of a will.

Hovnanian/ NV Homes/ Lennar/ Centex- Classic production builders.  

If so you need to factor in higher property management fees into your purchase.A classic mistake new investors make is not factoring PM fees in and self managing only to find out later they want a PM.

Yes I know it's an old show, but it's a classic!

Classic house hack. 

@Brett Wagner - Seems to the classic Mom and Pop operator. 

In my area...Exceptions are not guaranteed and you have to re-apply every yearMany families don't want to transition peer groups from elem to middle to HSCharter school lotteries only admit a small %Private school tuition is expensiveEven if you choose private school, it's wise to have a good backup public school if you have to make a changeOnly a small fraction of families home school or hybrid with a classical curriculumPeer group matters too1st thing I analyze is demographics and schools, particularly when vetting out of state investments.

This, to my albeit un-tuned ears, sounds like madness, and a classic example of building your proverbial house on the sand, but I could very well be wrong.

They could do the classic "shove everything to the middle", and I'd throw plastic over it, but it's more work for both them and me.Question: Is this a reasonable thing to offer at this time? 

This could work as a classic BRRRR, where you refi and pull out cash that way.