If you form a relationship with just one agent and use them exclusively I feel as if you will get better results.

The Trust and the S-Corp then form a multi-member LLC "holding company" which is also part owner of the S-Corp.

Brenton Vandenbosch If income is tight, but you have other skills that you bring to the table, you could look to form a partnership with others who do have capital.

I do have a modified monthly pro-forma for STR's that breaks out essentially weekly and weekend rates with different occupancy in peak season and off season to arrive at a gross annual income. 

We are budgeting conservatively on our pro formas, but to their benefit, they will be self managing which saves a considerable amount as a line item.The reason we are comfortable taking these terms is they will be making a very small down payment (FHA or 5% conv) so we are not overly-worried about having to liquidate the capital in a down market. 

Build the pro-formas for all and if 2-3 look decent make a trip out to see those 2-3 and as many other as you can have a realtor set up.

================================================================================Scenario 1 - Current State OperationIncome:Gross Potential Rent ($220/month lot rent x 36 lots x 12 months):  $95,040Vacant Lots (8 vacant lots (6 vacant POH's, 1 manager lot (assuming no rent collected), 1 storage home) x $220/month x 12 months):  $21,120Economic Vacancy (10% of net rent - 10% x ($95,040 - $21,120)):  $7,392Collected Rent (Gross Potential Rent - Vacant Lots - Economic Vacancy):  $66,528Operating Expenses:Operating Expenses (Assumed 50% of collected rent due to a) owner paid utilities b) POH repairs):  $33,264Net Operating Income ($66,528 - $33,264):  $33,264Value of Park Based Exclusively on Lot Rent @ 10% Cap Rate:  $332,640Value of Park Based Exclusively on Lot Rent @ 9% Cap Rate: $369,600Assumed Value of 23 POHs on RTO Contracts (you'll need to find the value of the remaining balances due on these POHs; I've valued the POHs under purchase agreements at 50% of the remaining balance of $10,000 per home):  $115,000Assumed Value of 8 Vacant POH's ($2,000/home):  $16,000Total Estimated Value of Lot Rent and POH's @10% Cap Rate ($332,640 + $115,000 + $16,000):   $463,640Total Estimated Value of Lot Rent and POH's @9% Cap Rate ($369,600 + $115,000 + $16,000):  $500,600================================================================================Scenario 2 - Improved OperationsImprovement Assumptions:Raise lot rent $20/month to $240/month (assuming market can support this)Reduce operating expense ratio to 45% of collected rent through utility bill-backs or other methodsFill 4 vacant POHs with lot renters (assuming market can support this)In general, it's best practice to buy based on actual operations (scenario 1) but it's helpful to see whether you may be able to meet your return criteria by creating a pro-forma.  

Hi @Alisha Decoteau,You should request ACTUAL (not pro forma) rent rolls and actual expenses for the last 12-24 months if you can get them. 

Should I form a corporation?

I would also quiz them about collection loss for the area...especially if the seller has poor records or is just dumping a broker pro forma on you.