Posted by PBoone on March 20, 2000 at 06:25:52:
First, please turn off the caps when typing, it hurts my eyes and makes me feel as if you are yelling.
Next lets look at the deal.
Park- w/ 7.389 acres, 9 old mobiles, 1 Small house
Sell price - $70,000.00
Income - $360.00 x 9 = $3240.00 x 12 = $38,800.00
Expense - $3240.00 x .50 = $1620.00
360N, 10.75IR, $70,000PV, = $653.44PMT
Monthly income $969.56approx. Poor Cash on Cash return
Consider what the Mutual fund is paying, to compare the income stream. NOW on the other hand by doing this you lose liquidity of cash! What then?
How about this??? Offer the seller 10% Down or $7,000.00 and the seller become the bank @ 10% for 30yr
or there are probably ten other ways to look at this deal so in short. Our philosophy is to keep as much liquid cash in use at the highest yeild possible and use the sellers or the banks for the highest possible returns.