It seems like a good opportunity to expand our experience but it doesn't seem worth going through a broker and at only two properties its not worth trying to form a management company yet. 

Michelle I think the idea to form a team is ideally the way to go. 

Ask for actual tax records on rents collected...dont accept "pro forma" operating statements, those are wishful thinking. 

I would like to form a LLC or S Corp to start investing some of my capital.  

The owners have priced it at a 6% pro forma cap rate assuming the last unit gets leased out at honest current fair market rates ($2.75/sf).My question to you all is what are you seeing/expecting in terms of trade caps for comparable property in comparable markets?

or maybe my partner, myself, and my partner's parents could form a legal entity so we can all own the titles?

In addition to what he has shared, I like to build a pro forma to see how I think the park can perform when I am done doing all the work. 

I've got a basic pro forma that shows the numbers work great but so far no one is even willing to talk term and rates let a lone hard numbers.

California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

If you haven't started one yet, a scenario analysis pro forma could help in teasing out assumptions to see which ones are the most viable, worth your time, and worth the risk.