That would position you for the next project.

I see a disservice being provided in the given example by the real estate agent by not bringing creative strategies on both the sellers and buyers position on this particular deal.

On a positive note, 100% of the purchase price should be available for depreciation since there is no land associated with the purchase.I see a number of other double-wide manufactured homes available in GR, many priced well below $120K.  

Key Deal Points:Loan Amount: $88,000Lien Position: 1st position Purchase Price: $120,000Appraised Value: $250,000Interest Rate/Return: 11% annual returnTerm: 5-year balloon (meaning the entire principal and interest must be paid at the end of the term)LTV ratio: 35.2%---Licensed Lending company for contractsRMLO package completed on buyersServicing company for payment

I am looking for a bank to carry 75% to 80% of the purchase price in 1st position, and have the seller carry a small 5% to 15% 2nd position note on the property.

The Suburban markets with New construction offering decent builder buy-down rates 5s %, and selling completed inventory homes to investors is an opportunity we’re pointing investors to, as well as Duplexes outside the city, that’s where we’re finding some of the best options to get closest to positive cashflow with 20/25% down.

I love section 8 but it comes with positives and negatives just like any other strategy.

WHEN (yes I mean WHEN not if because over 30+yrs it happens many times) when the market has a drop for whatever reason be it a bad election, war tensions, someone sneezed on there terminal and HFT's went bazerk selling, whatever the cause, WHEN the market drops you get a "Margin CALL" and next thing ya know there not just selling off those leveraged positions BUT there selling em off in the drop, at the lowest price, amplifying losses, all those returns going out the window in moments.     

However, when I reviewed the property information on the PVA website, the records indicate it is a 3-bedroom, 2-bathroom property, excluding the 2 bedrooms and 1 bathroom located downstairs.

As others advised, get a structural engineer in there to review the conditions.