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?