Jon - Thanks, the gambling scenario you presented I can relate to because I used to live in Vegas and play a lot of poker!

I agree with Matt on two points:There isn't nearly enough information here for anyone to give a real opinion.Based on what information was presented here it sounds like a horrible deal.At approximately 50% occupancy this park is in trouble.

It hasn't done anything, so it can't have a history of having done something.If the LLC has conducted business in the past, thereby getting a history, you're presented with another problem: you don't know (and under NO circumstances should you trust the seller with a complete/truthful answer) if someone out there isn't about the sue or file a claim against the LLC.

@David T.I agree that litigation only benefits the solicitors.If sufficient evidence is presented to the landlord along with a letter (perhaps from a solicitor) detailing the statutes that have been violated, it is quite probable the tenant will be released from the lease and all deposits refunded.Sometimes projecting you have the resolve to go to war is sufficient to create an opportunity for negotiated resolution.

Or do they simply present an opportunity and I figure the rest out?

I do not really see that as the fault of the tenant unless clear abuse is present.

That said, he still found the tenant to be in arrears and granted judgment for the plaintiff.I've even lost in Cleveland Municipal Court over font size in the 3 day notice without a tenant present to raise any defenses.

There are no holding costs (taxes, insurance, utilities, mortgage) incurred while the rehab is being done and the property is being marketed for a tenant with a turn key.You don't lose 1 month of rent for lease up with a turn key property.Lost cash flow opportunity while you put a team together and find a property, especially when you keep losing out on MLS deals because you're financing.Lastly, you don't recognize equity until you sell which means you need to look at the present value of that future equity.

Also who presents as more believable and who kept the best documentation versus verbal agreements the court cannot rely on 100%.Even if an item is valid the judge can throw it out for being too vague and non-enforceable.

I plan on doing a final walkthrough next week after I verify the numbers this weekend, but want to make sure I'm prepared before presenting an offer.