I also talked with him and he wants to work out a deal where I manage the entire park for him for 15% of the gross income ($469K last year), and convert all the park owned to tenant owned homes (he wants to do this).The $5k/month with the actual land owners (also 75 years old) wouldn’t start until the current land-lease is up, so my expenses for the next 7 years would be zero, I’d essentially be managing & improving the park that I’ll eventually own.If I went for this deal, my plan would be:Get it under contract with actual land owner, air-tight where he nor his heirs can back out of the dealThen get a deal worked out with the current lessee to manage his park for 10-15%Convert all homes to rent-to-own (rent credit, etc)Gradually raise rents to marketThe fruits of my labor won’t come into effect for 7 years, but then I’ll be cashflowing like a beast for the next 20 years since $5K/month won’t even be 1/3rd of what actual bank financing would cost.

Knocked on 15 doors random afternoon after feeling good about my workout. 1 out of those 15 called me 2 weeks later and its about to be my best deal ever!  

That way they have to work out the details.

Agree with everything here that's been said:  It never seems to work out.  

Keep in mind at this price point you will undoubtedly have to give seller credits for closing costs of 3 to 5% still good margin if the numbers work out..

If it doesn't work out, the contract expires in six months anyway.If you like a property, make an offer.

But math just doesn't work out for me with 20% down-payment. 

I would just first make sure your numbers are going to work out.

Well then if the auction does not work out, you can get it as an REO. 

I understand there may be a few hoops to jump through, but if the neighborhood supports it and the numbers workout, I would consider it.