Section 515 Rural Rental Houses

[Nate Truxel]

There is a piece of property about 1/2 mile from one of our local community colleges for sale which includes 14 houses/trailers. 6 of these places are currently being rented out for $200-300/month “when they pay” is what I was told.

I’ve been researching section 515 loans since they can be used to buy, develop, and improve land and housing. These houses would fall into the low-moderate income tenants. One of the regulations of a 515 is if it’s for profit you have to operate in a “limited profit basis”. Does anybody know what exactly this means & also any opinions on areas like this for rentals?

All current houses would need some rehab and the trailers on the property could be sold as is for a few thousand each