Posted by Phil Pelletier on June 30, 2003 at 17:44:04:
Yea, go for the beef, not the skin! The cashflow from the coaches (the homes) is Nothing compared to the instant equity you get from placing people in the homes, creating a rent roll that is documentable, and refinancing the cash out to an investor who is looking to make a decent return on his cash, backing his investment with Real Estate. You should try to buy the PARK for a song and have him finance it through maybe a lease option. If you can rehab that park inside of 12 months, you could make a MONSTER return on your efforts. Each home site that has a $400/month documented, 12 month rent roll can add between $25,000 and $35,000 in equity to the property, NOT counting the payment on the home (That’s just gravy). Lock that place up for 12 months and see if you can rehab it for yourself, then flip it to an investor for two or three times what you paid for it.