Posted by Tony-VA on March 02, 2002 at 07:42:52:
There are many different ways of investing in such a deal. Buy and Sell, Buy for Cash and Sell on a Note, Buy for Cash and Rent or buy on terms and sell on larger terms.
When buying the mobile home and the land you have several exit strategies. If we are looking for Cash Flow, we look begin by considering what the home could rent for. When the look at the financing. What would it cost us per month to finance this amount. We then see what the spread is. If it looks worth our while, we go for it.
It depends on how you want to make your money.
Even if you buy for cash, I suggest that you analyze the numbers as described above to determine if the property is priced well enough to make it worth your while. Even if you don’t know the area, you can get a ball park idea of investment value by screening it this way.