Need help analyzing... BP calcs won't help me on this one.

[Sandra S.]

I don't know how to analyze this bad boy. Can anyone assist? 1970 livable/rentable mobile home. Needs new interior paint, nicotine remediation and flooring. Asking price is $140,000 with the seller willing to carryback $50k. Seller terms negotiable. Rents for $1350 approximately. Ultimately, after some more time appreciating, I'd tear this down and build new construction to sell. Right now, old mobile homes in this area are being torn down and new houses are going in their place, then selling for $350k. Cost to build new is high around here - I figure it'll cost me about $160k.  My first problem is the BP calculator won't let me do a 64% loan. Second area of confusion is how to analyze the return if I hold it for a few years and then build. If I demo'd and built now, I'd only net about $20k. That margin is too tight for my comfort. I'd wait until I could make at least $50k, which will likely be a few more years. Another potential approach is that I have someone looking for a place to live right now that has $160k cash but no income, so she can't get a loan. I'm thinking there has to be a house-hack solution in here somewhere!