Posted by Dr. Craig Whisler CA NV on October 07, 2003 at 10:31:53:
6 lots at $175 per month X 12 =about $12,600 per year in Gross rents not net income. If you figure about 40% for operating costs then you would have a yearly net profit of about $7,560. At that rate the space rent alone would take about 11 1/4 years to amortize your loan. That is asuming that you get a zero interest loan. I would not figure the mobile homes into this equation if they are not worth much.
I wouldn’t pay more than about $35k for a stream of income like this, would you?
Since it wise to estimate all of your costs in advance, I’d check with a plastic surgeon before doing this deal. I would want to know how much a new layer of skin would cost me.