Advice on Possible Purchase


#1

You have a terrific site here, it was my first google choice and haven’t left yet… spent countless hours reading every post on here and now would like to obtain some thoughts / insights from the experienced user base here. Hopefully as I obtain experience in this area I can pay it forward.

I am researching a property that has 5 acres and 6 lots in a small rural dirt road community. Asking price is 165K, 20% down @ 9%. The lots are spread out over the entire 6 acres, which provides seclusion. 5 of the trailers are POH and the last is lot rent only. Total income including rental income is 3050/mth. Trailers are all 1980’s and per the township can be replaced with an “improved trailer” which as long as it is “better” than the old one, will be OK.

Running the numbers to obtain a 15% cap rate gives me an offer of 150K at 8%, with 10,000 down (seller realtor says he may accept 10K, as it is all I have available.) This would then generate ~775/mth net income. While concerned about an exit strategy as it will be a LONG time before I am able to seller finance, I have the option of replacing these trailers with SBH in the future possibly…

I am 35 and my investment strategy at this time is based on monthly net revenue and low down payments. Low down due to being poor :slight_smile: (and no rich family or friends) and monthly net due to replacing employment income for retirement purposes. While I hope to be rich, ultimately, if I can live life without working for someone else = Happy Terry! I have six years of college with an MBA and still own a couple rental properties (SBH) and an assisted living home business.

With that all said, I am curious as to any insight you may provide. Thanks for the long read and your input will be greatly appreciated!