Re: MHP deal. Is this good enough? - Posted by Ernest Tew
Posted by Ernest Tew on March 01, 2001 at 08:33:24:
Steve, it sounds like you are on the right track. There are, however, a lot of things to consider.
If the net operating income is $40,000 per year with the 15 vacancies, you may have a good price. If, however, it is based on full occupancy, the property may be overpriced.
If you can convince the owner to enter into a net lease with an option to buy, it could be attractive for both parties. Properly structured, the gain you create by upgrading and filling the vacancies could be completely tax-free if the option ends up being in a Roth IRA account.
Give me a call at (352) 475-1280 if you would like to discuss how we do it.