Posted by Tony Colella on November 18, 2009 at 18:22:28:
In Reply to: Re: Advice needed for a newbie posted by Darius on November 18, 2009 at 11:32:54:
How many of your friends who say that by renting mobile homes you will "run into bad tenant problems" have actually been landlords and rented mobile homes?
Most often I find that the worst advice comes from those who are too afraid themselves to try.
I also do not look at cashflow as a sweetener. I believe positive cash flow should be your main focus, especially in times of decreasing property values.
Foreclosures are making discounts easy to obtain but just because you buy 20 t0 50% below FMV today does not mean you have a deal. You may well find that in a few months time your dicount is now ABOVE FMV.
Banks are not lending money to good buyers so flipping is a risky bet in my opinion. Cash flow will hold you through the ups and downs.
Tony