With a long-term tenant in place for over three years, the property generates maximum rental returns in an area where townhouses are rare and highly sought after.

With a long-term tenant in place for over three years, the property generates maximum rental returns in an area where townhouses are rare and highly sought after.

Quote from @Conrad Tillman: Quote from @Jay Hinrichs: LOL  its kind of like 50 ways to leave your lover.And its very much dependent on your jurisdiction. however I will list the stuff I have gone through the last decade or so through about 200 new builds in 4 markets.1. material price fluctuations. rarely down almost always up pretty much annually. 2. as we all know labor  scarce  and or unqualified and do poor work..

PAL rules have a curve that drops to zero at $150k of combined income for couples.

you have someone with very little means borrowing your 5k Em ( which is a rare EM in most markets) and even if they get it back chances are you not going to get them to pay U a dime of interest they will just go to the next gater lender.

Lots of skinny deals, overpriced vs. sqft/layout, bad street, or a combination. 

So, auditing what we are charging our owners rarely has an issue.

My guess is 1M.That would be real rare.  

Wondering how to build trust in him to do seller financing with us after this.For reference we have 100% close rate, my thoughts approaching this is to counter back and say the risk of default is very rare, if he's worried about the park defaulting he just needs to save up $20k in reserves and he'll get paid $70k in income for the park for the next 5 years while he waits for balloon.

The mineral rights don't bother me as much as them being combined with the surface rights.