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I read the recent IRS release about the 50% immediate depreciation on any property in the Go Zone (Gulf Coast Hurricane Disaster area).

Anyone doing this or have leads on good investment property in Louisiana or Mississippi?

I had a Realtor in Tennessee tell me they have a program where you can buy a property in bad condition and get a big from a contractor to fix it up. They have a bank that will lend 90% of the final value. So if the final value is 10% more than the purchase price + the contractor bid all you have to pay is a couple thousand in closing costs. They pay off the contract on the house at closing and then give draws to the contractor until its finished. Once its done it supposedly turns into a 5 yr ARM at 6% Interest Only without an additional closing.

Anyone ever heard of a program like this before? Its basically 100% financing.

I am thinking about trying one, and if it works and described I will let you all know. Sounds like it could be pretty cool.

Anyone ever bought a rehabber on a construction loan or heard of this before? I had a Realtor out of TN tell me about a loan program where you buy the house in any condition as long as you have a bid from a contractor to repair/improve. The appraisal is based on the value when all of the work is finished and they give draws to the contractor. He reccomended I use this to buy HUD forclosures...

All my other properties I used my own cash for the rehab...

Anything advice on this?

FNMA would not do 2 manufactured homes on one piece of land. If they are on seperate pieces then only 1 could be a second home. Also FNMA will not touch anything before 1976, nor manufactured home investment properties.

I would sugest staying away from a pre 76 manufactured/mobile home, particle board floors and all.

If you want to invest in manufactured homes, post 1996 double wides will hold thier value... its still tough to find anyone to finance them as investment properties tough.

With Michigan having such a distressed economy it doesn sound like the best place to invest... I know people have the buy low sell high idea about Michigan but how long can you hold something in such a depressed economy.

I know a lot of people who did this program in cape coral. When you say 'no draws to builder' do you mean from me or the mortgage company?

I can not seem to find a mortgage company willing to finance a mobile home as an investment property. Its permanantly attached to the land and taxed as real property, FNMA/FHLMC would do it as a primary or secondary but they do not allow for investors.

Any thoughts?