Distressed assets are extremely hard to find in Canada.

If your DTI is still off, you can go the commercial route, where they loan based on the asset and your credit.

@Brian Warren I think you are going to have a hard time finding an investor-partner when this is screaming class D asset with rents below $400/month.

Marcus and Millichap puts out excellent quarterly reports for multifamily (as well as other asset classes) in many of the big Metro areas, you have to register and provide an email:http://www.marcusmillichap.com/researchTheir reports are really excellent because they break it down by sub market.

A successful short-sale typically benefits the borrower (homeowner) in the following ways: it can give them more time in the house (and payment-free); it is better than a foreclosure from a credit report perspective and wold allow him to obtain a new purchase loan for a new home in the future more quickly as compared to having it go through foreclosure.I would encourage you both to reach out to a local realtor with short-sale experience and have them facilitate the transaction, it would not cost you or the owner the commission as it would be paid out of the bank's proceeds.No, in a short-sale I would definitely not offer any payments to him directly that are not known and approved by the bank, you can get yourself in hot water and probably legal trouble by doing that on a short sale.

What is your current Income, Assets, Liability, Amount Capital Reserves ?...

When I was analyzing deals in the Private Equity sector, I saw everything from 26% - 42% IRR needed depending on the size of the company managing assets, additionally how many Management/Fee company's are factored into the business model and at what point in the expense model they're collecting fees.There are payroll, Marketing, Office space, etc... now a part of your business model, acquiring an asset for cashflow becomes a small part of your equations. 

I think you could get a better purchase price if the property has been on market for a bit, as the purchase price seems high for how the asset is currently performing.

If you remove that hurdle, you can move up the price, asset quality, and tenant quality.

Thus, looking at the numbers in a “per pad basis” we find that when you buy a home (to add to a park) you use 3x more capital than when you buy a park that already has a home in that given pad.Unless an investor can obtain financing when adding homes, it is fair to ask:  What is a better investment, adding homes to an existing park, or buying another park.