Not only that but you are going to carry a Heloc in a 2nd lien position and you will not be able to pull out more cash unless you do a cash out refinance to pay off the previous Heloc and take out more cash.85% of the home owners who take out a Heloc refinance in 3-5 years so it makes more sense to simply do a COR and avoid the future closing costs.

@Carrie Zhang Interesting you found additional experiences on that reddit thread - thx for sharing!

The place is gentrifying since people cannot afford to live or invest in the New England area + New York City Metro, Northern Jersey, Southern Florida, California, etc.People are then targeting for areas where people can follow the money and see where the next gold mine is. 

The repairs and maintenance on 25 year old mobile homes is sky high, the uncollected rent and evictions on park owned mobile homes is astronomical, and I bet the owner isn’t carrying any insurance.  

As a resident of the Hurricane Sunshine State, I can tell you it's Fool's Gold. 

They will usually carry enough materials on their truck or van to be able to do most repair jobs and should be included in their cost or fees.

As a side note,  it doesn't seem like the margins are very good if you are spending $450,000 on the hard construction, still have carrying costs (debt service/loan origination, taxes, builders risk insurance and general liability) and have to include the subdivided parcel which presumably decreases the value of your current home.

Hello, this is my first rodeo on investing in a run down house, my Amex gold business card approved me to spend 120k and I got approved for a line of credit for 50k.

2) If secondary, do you have a contingency plan to fund this asset's negative carry?

Debt. org estimates that the average household with a credit card carries $8,396 in debt.