Oct 27 (edited) • Questions
Questions on Deal Structure - 25% Down Payment
I am trying to structure a MHP deal. Is 25% down a deal killer?
Property Type - MHP
Offer Price - $1,347,597
Units - 24
Annual Income - $171,366
Annual Expenses - $68,547 (used a default of 40% because his expenses were lower)
Occupancy - 95%
NOTE: Park owned homes from the 70s, 80s, and 90s.
Owner Finance Offer –
Mortgage Purchase price - $1,347,597.
Down payment - $327,087.
Interest – 2.5%.
Monthly payment - $4,032 principal and interest.
The buyer will pay taxes and insurance, and these are separate from the monthly payment.
Term – 60 months.
Balloon payment at the end of the term for the remaining balance.
Approximate balance at time of payoff - $898,818.
Seller will net $1,428,590 for the property over 60 months.
The cash-on-cash is greater than 13%. Is 25% down a deal killer?
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Questions on Deal Structure - 25% Down Payment
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