LT Cash Flow : Renting vs. Owner Financing (mobile in Park)

[Natalie Kolodij]

Hey guys,

What we had originally planned to do was buy-hold-rent mobiles in parks; however it seems near impossible to find parks that allow this. It seems the popular way of avoidance is by technically selling the home w/ seller financing. 

My question is- is it worth it to try to find a few parks that will let me rent or should I just take a straight seller financing sale approach?

Example:

Trailer  Cost= $5,000

Lot rents here= $500 ish

Reasonable rent for trailer in park= $1,000

Takes 1 year to recoup the trailer investment. Then after 1 year we are just bringing in $500 a month clear. 

Time to make $5k Profit= 1 year and 10 months 

If we Seller Finance....

Lot rent is $500

Trailer cost= $5,000

Trailer re-sale value= $10,000

So we make $5,000 profit in the deal plus interest 

However- if we still price it to where we're bringing in $500 a month from it...The income only lasts for 2 years. Then no more residual income. 

Is there a way to make owner financing more profitable?