Solution: Unless you are intimately familiar with the local market, demand third-party verification of the value of the property, ideally via an appraisal.In the event of a default, getting the property back might be a huge hassle - If your borrower does stop paying you, you're going to have to foreclose to get the property.

He said the park was bought for $1million, he put 10% down and the seller made an interest rate of 5%.If I understand correctly he put 100k down and the owner made 45k a year off interest or in other words, Brandon wrote a check for $3,750 a month?

The seller is already selling it at a loss as he bought it in 2009 for $1,120,000.

How does that effect me and the seller?

I went through this recently and was able to request the seller serve 30 day exit notice to the M2M tenant as part of the purchase contract.Your mileage may vary city to city and state to state?

So my math in calculating the actual cash flow of the property can be very different than that of the seller. 

But the sellers have already accepted my non binding initial offer of $350k and I'm wondering if I should risk lowering my offer?

It seems to be high for a 2 bedroom on a spotty area but  if UoM is driving the demand , it is understandable ..

Before I put non refundable earnest money to whole seller, I got a rough estimate from GC for $50k, which also matched with whole seller estimate.

Let me first provide a little context on where we are at with the deal and the overall condition of the property.My intention: Primary residence- 2 yrs, then rentalLocation: Denver, CO (Very high growth neighborhood, this deal was almost all dumb luck...)Condition: House is B Class, recently remodeled, 3br, 2ba, huge yard, carport, shed, new roof, everything about this house is above and beyond what I consider move in ready.Asking price:  $399,000Days on Market: 27My Offer: $375,00 (Accepted)Contingencies: Inspection, Appraisal and Seller allowed to live in the property for 9 months after closing while new build is being completed.The seller is in a position where they need capital to finance and complete the build that has already broken ground on their new home.