Praying for appreciation?? - Posted by Gene
Posted by Gene on May 11, 2006 at 14:16:21:
Do you just pray for appreciation?? With appreciation the way it has been you could buy anything and hold it for a few months and make tons of money…but the markets have been changing.
Or are you into development, subdividing, ect?
I purchased land and develped it and made good money.
I like properties that cashflow because they give you many options (and multiple exits). Here is an example…I bought a double wide with land for under 20k. Similar units are selling for $60k to 90k. So what are my exit options…
Resell it with no fix up for ~60k
Rehab and resel for ~90k
Rent it for 550 to 650 a month
Lease option it for 700 a month with an option to buy for 85k
I had a lot of options and even if the markets turn I will make money…lots of it. I ended up renting it and getting it refinanced. It apprased for 82k and I got a 80% loan and got 65K cash out of it. The rent covers my new morgage and I am siting with 45k in my pocket.
With deals like that I have no problems let you have all the land “deals”.