The risk component is hard to quantify for you on a message board and your life circumstances weigh into any advice that someone could give.  

That's the important component.

Have not really experienced mobile home lots that were not in a park and have the land component to deal with / and or leverage in on any particular deal.

The payments you receive have two components, interest and principal. 

From a yield and investment to value (LTV component) standpoint, the note purchase would be acceptable to note buyers.

@Katie Neason, awesome on your deal.I haven't ever developed a new asset so I hope I can be helpful.My acquisitions have been on existing product and the 3% acquisition fee was calculated on only the purchase price.Also all my deals do have a component of a preferred return.

The purchase price reflected the delinquent real estate taxes, the variable component was the interest rate. 

(Sold a business and have high income this year) We agreed on: 5% P&I, 10Y Balloon, and 25y Amort.My Questions is: What if I suggest to him that we do SAME Amount of PAYMENTS BUT principle reduction payments and Not have interest component. this way i pay the property off faster.

Cost segregation = breaking a piece of real estate into more components than just building and land.The different components will normally be depreciated as a faster rate and potentially eligible for bonus depreciation.Given that the property was placed into service in the past, you will need to do a 'change in accounting method'.Also, the cost segregation may be harder to determine as only assets at the time of purchase count. 

I wish there were more Canadian components present!