My dad has a 8 ￼acre parcel he is giving me a super good deal on. I have about $25,000 saved I was thinking about starting a trailer park.
I was gonna buy the property from him for $40,000 I would put down 3%, pay 8% interest for 10 years and then take out a $30,000 loan from him with 10% down payment with 8% interest for 5 years. I found 3 nice trailers for $10k each. He would help me start off by getting me all the permits and paying any extra fees. Reason for the high interest rates is he would give me my money back in the future as like he would be a savings account for me.
My total monthly payment would about $1,100 I could pull roughly $1850 off rent I’m not sure what would be my expenses yet.
The good thing would be I could also get a FHA loan through a bank on a duplex since this loan would be under the table through family
what do you guys think??
Trailer parks are really hard to open. Cities do not like them because they don't pay enough taxes also from everything I have read its not particularly profitable. Usually much better to purchase an existing then to create a new one.