Posted by Carl on June 27, 2003 at 24:58:06:
Thanks for such a quick analysis Ryan.
One piece of info I left out for brevity - I have a quote from a local dealer to deliver and level clean fully functional single wides for $5k each, I was guessing I may be able to do slightly better. I figured worst case would be $5 to 6k per unit.
If I sell at approx $10k each, 60mos of $300/mo is over 26% interest. Is this real? I was figuring about 10-12%. Man, I need to do some homework.
I wasn’t expecting 40% expenses on the land, more like 20%. Why so high? All underground utilities are brand new. Taxes, insurance, and a little maintaining of the gravel roads was all I was expecting. I would be doing my own management, and selling all units to reduce unit maintainance to the lowest level. I’m sure I’ll eventually end up with a few units back in my lap, but I’m figuring that to be the exception. Hopefully be able to make some lemonade from them.