?Outside my sweet spot, but worth pursuing?

[Michael Mies]

Here’s the deal…

·1.89 acre lot with a 1680 sq. ft. (3 bed/2ba) manufactured home in great condition/well-maintained property (owner-occupied). Nominal repairs/updates required.

·Assessed tax value of $225K in 2008, $180K current ($168K land/$12K home).

·Property abuts to a very desirable development and is located on a street that has multiple lots which have been privately developed (homes now selling in the $300-400K range). Great schools in an unincorporated area (low taxes) within 30 minute commute to Charlotte (NC) center city.

·This property is definitely the "black sheep" of the expanding neighborhood (no HOA restrictions) and could be rented out for at least $1,200/month (possibly $1,400) or sold within 30-60 days for at least $125,000 (my estimated current market value of the land). Realtor comps came in at $150-$175K (albeit no paired sales or comprehensive analysis provided yet).

·Property was inherited by current owner, but subsequently obtained LOC and currently owes $95,000. Owner is moving and wants "a clean break" from the property (having personal issues with his deceased wife's family that lives in the neighborhood… which was originally a 25 acre family homestead before it was divided up among their family).

·Owner has initially offered to sell to me for $120,000, but willing to negotiate (I believe he’d sell for $100K if I had cash in hand!).

Initial thoughts…

Buy this property, rent it out for at least a year (season it) and then either refinance or re-sale to another investor or developer/home builder (holding out until more hi-end homes are completed on the street). The problem that I have with this option is that it ties-up too much of my working capital to fund my buy/rehab/flip operations.

I seem to have the property owner’s ear right now (he’s open to just about any idea or deal structure). Any advice?