Posted by Greg Meade on August 09, 2003 at 10:48:42:
This is why I posed the ? I am 52 years old and trying to develop income stream for retirement. I fell into one lonnie deal that isw working out fine but the next one is one i started rehab and I barely got my $ out of it. It was like a giant pit i kept throwing $ at. I won’t ever do that again. I like your idea of using this down to aquire new deals , i guess the question i really need help with is single or doublewide homes. I am familiar with s/w homes but have never set up a d/w. Do the increased profits justify the expense???
Lonnies, Flips, Land/home packs - Posted by Greg Meade
Posted by Greg Meade on August 08, 2003 at 11:56:26:
Since last posting, did another Lonnie deal, flipped three Conseco repos (made 790) average per flip, did a rehab (never,ever again), and today put money down on two lots zoned R-4. In FL this is mobile approved land. I am trying to find something I enjoy and can make a buck on. The lots cost 5k each (500 down, 109.86 per month @ 8%, 48 months).
It will cost 5200 per lot for water well, septic, pole,impact fees. Can put 1995 s/w shingle/vinyl in for 5-6k set up. Same year d/w will cost me 14-18k. I can sell the s/w on terms for 6k down 500 per month, 12% interest for 35k. The doublewide for 56k 10k down, 12% 600 month payment. I have friends telling me d/w are the way to go but money is tight. The cost to move a d/w is huge here and it must be paid cash. My thoughts are to try these first two as s/w and use down to pay off land and pocket the monthly checks. I know there are people on this board who have done a lot of these l/h packs and i need to hear from you. The scary part of this is we are talking a lot of out of pocket money but a nice return for retiring. Thank you!
Why are you going to use the down to pay off the land?
I’m just getting started at this, so maybe I’m missing something, but wouldn’t it be better to use the down for another deal and get a Lonnie sized yield instead of paying off the 8% loan?