Posted by Jim Schad on August 27, 2003 at 10:00:01:
Is the $225/mo just for the lease period then a baloon/option is due in 5 or 6 years?
Just taking the $225/mo in consideration equals about $1125/mo for 5 or 6 years. If you pay $25K for it that gives you about a 50% yield.
Now consider if they can’t come up with the balloon…you could carry the balance again and increase your yield.
Or if they default you can resell. I am doing this now and it is a pain, but the numbers say it is worth it.