The tenants are happy because they have in park parking, the park owner nets an extra $3600/yr and the city relieves parking strains.

Banks have really tightened up a few years back you can get lucky at 7-8% of price but 35% is excessive Are you using an agent for advice and did you get a reliable rehab bid

* The plan is to tighten up management, including converting to using a 3rd party manager who employs a part-time on-site manager.* The plan includes raising rents about 5% a year until they are at market.

It will also strain your relationship with them in the future.

It sounds like a great way to strain relationships and hurt yourselves long term.

However, there is risk involved when the economy goes south or funding tightens, you will not be able to refinance or get funds at the 5th year.

What if you're leveraged to the max, have several sizable deals in development and banks tighten up lending/raise rates/the market tanks?

Told him all he has to do is tighten two screws by the knob, and he went over to take a look, and says, "oh, I see it now".

They'll feel pressure to reciprocate, further depleting their already strained resources.

I would pass as I am looking for a park to purchase and have analyzed many deals I’ve tightened up my criteria which slows down the purchase, however a MHP isn’t something I want to rush or have buyers remorse on.