Hi, Moving to Fl and found this deal, read Tony"s book,changed our thinking.
- 10 mobile or SFH zoned lots in nice area in Occala Fl near GainesvillesFl. Nice subdivision in great location lots are quarter acre. Need development and improvements fees cost to county which about 15 thousand per lot.
2, Brand new SFH in same subdivision CBS perfect for us 1225 sq foot. We could live and manage property.
3, Plan is to buy 10 lots (18 availabe) develop with used mobiles or repos. Husband is experienced doing this. To develop, move, set , buy home we figure we could go 45 to 52 thousand per lot total cost per lot (offer 20 thousand a lot, 30 thousand for mobiles and improvements) Do Tonys land bank approach.
4, There are also 6 existing mobiles on quarter acres by same seller which bring in $3600 a month rental. These would be available to if we want at $360 thousnd all six, with 50 thousand down and owner hold mortgage at 8%. We are thinking of this also.
So for home, 10 lots we think we can get for 340 thousand with $100,000 down and owner finance at 7 to 9 percent for 15 years (about 2600 monthly). We can handle this as that also includes us a nice convenient place to live and this is a good city so far, but am going back for 2 weeks to check out.
We can develop 3 lots immediately for another $150 thousnd investment and have &600 x3 = 1800 monthly income prettyquick and piggyback from there. Basically my husband thinks that if we eventually get the 10 lots , 10 x 600= 6000 thousand monthly income that could service the debt. He thinks we would essentially have a mobile home park without mobile home park restrictions and in 10 to 15 years the property which is a prime location is developed , zoned for high best use (SFH). If we get all 18 lots someday 18 x 600 monthly = 10,400 monthly.
Adavantages we think (please advise)
A. We have nice new place to live in area where rentals are in a prime florida location. B. Even thou we have seen lower cost small crummy parks for less the potential is far less due to zoning and location on everthing in this north part of Fla that we like. So the apprecation of a developed correctly zoned lot should be far greater. Expect to leave mobiles on property for 10 -15 years and then move to higher best use once the mobiles have depreciated to no value. C. Scary part to me, total investment for home, lots, improvements would be around 700 thousand . My spouse thinks that with a cash flow of at least 6 thousand a month plus part of that price is our home and that it is great location where he wants to live. We can handle the $100 to 125 down payment and the improvements to start on 3 lots and pay the mortgage for a year no strain.
What do you guys think? thank you and we like the good advice given here and elswhere for free. How nice. Theresa