What is everyone offering on a seller finance? The park I'm looking at was last purchased in 2019 - would the 4% - 5% range sound fair?

Hey everyone! I have an MHP that I am looking to place an LOI on within the next week. During my conversation with the seller, he disclosed to me that he had filed for Chapter 11 bankruptcy the previous week. Outside of the typical financials and dealing with the Bankruptcy Trustee, is there anything else you would add within the Due Diligence?

I'm looking at a park with several note sales - would I underwrite these as POHs?

Proper due diligence is required at every level as an investor. Just uncovered the worst rated water system in the state. Grade F with a -10 score on a scale that normally goes from 1-30. Owner negligence could possibly result in the park being shut down. If i continue to pursue this deal, I'll have to negotiate with the epa and deq to close. A simple amount of repairs under $3000 and a qualified water operator to oversee the system is all that's required. Laziness kills your bank account

How concerned should I be with small cramped lots? All of the homes are old but seem to be in ok condition now. However, when they reach the end of their life span, replacing them would mean a costly shuffle of the park layout to get newer homes in.