His niche is very different from what I am familiar with, so I'm having some trouble running the numbers and I thought I'd turn to you guys.So he(my relative) has been doing this exact strategy for a few years and has done a good number of deals(~40) so I'm confident he knows what he's doing, but his strategy is as follows:Buys a distressed trailer(mobile/manufactured home) repairs it, and then sells it to a tenant that either can't qualify for a normal  loan, or doesn't have the money to purchase a normal home.So for this particular deal, the numbers are as follows.Purchase price of $5750.Rehab of $8000.Rehab should take roughly 3-5 days.Selling we are assuming a month, but he says typically less.Taxes are around 600/yr(which the new owner will pay) but accounting for the month we have it, $50.The lot rent for the trailer is $350.Closing costs would be maybe ~$100.We'd sell it for ~22k, with a down payment of 2k at 14% interest for 75 months.So our purchase and rehab would be ~$13850, plus a month of holding for $14250.We'd get 2k back bringing our investment back down to $12250.We'd bring in 400/mo from the mortgage payment.As far as I can tell, this would be about 35-40% cash on cash return.Please go over these numbers and tell me if I'm missing anything.

His niche is very different from what I am familiar with, so I'm having some trouble running the numbers and I thought I'd turn to you guys.So he(my relative) has been doing this exact strategy for a few years and has done a good number of deals(~40) so I'm confident he knows what he's doing, but his strategy is as follows:Buys a distressed trailer(mobile/manufactured home) repairs it, and then sells it to a tenant that either can't qualify for a normal loan, or doesn't have the money to purchase a normal home.So for this particular deal, the numbers are as follows.Purchase price of $5750.Rehab of $8000.Rehab should take roughly 3-5 days.Selling we are assuming a month, but he says typically less.Taxes are around 600/yr(which the new owner will pay) but accounting for the month we have it, $50.The lot rent for the trailer is $350.Closing costs would be maybe ~$100.We'd sell it for ~22k, with a down payment of 2k at 14% interest for 75 months.So our purchase and rehab would be ~$13850, plus a month of holding for $14250.We'd get 2k back bringing our investment back down to $12250.We'd bring in 400/mo from the mortgage payment.As far as I can tell, this would be about 35-40% cash on cash return.Please go over these numbers and tell me if I'm missing anything.

I've dealt with distressed homeowners needing help over the years and know a lot from that angle, but I've become interested in flipping and wholesaling, it seems like something I could do well, which can  help desperate homeowners needing help + provide some financial relief also to walk away from their home and avoid foreclosure.

I recently decided to drive for dollars on 20 properties I wrote down that were distressed, as I’m looking for my next deal.

The fact that it is in foreclosure means little except that you may be in a time crunch to perform and that you are dealing with an extra sensitive situation and distressed owner/borrower.

I would drive through different neighborhoods on my way to work compiling a list of distressed properties that I intended to try and track down the owners and while I was doing that someone contacted me with a house that they wanted to sell.The property needs roughly 15 - 20k in repairs but once done the property should have about 50k in equity.I am trying a mix between the house hack and the brrrr on this one.I am purchasing the property as a primary residence and will live in it as I make the repairs.

Start making friends with people that get multifamily listings or have access to distressed multifamily owners.3.

Right now there are very little distressed assets, making this time in the economic cycle a difficult one to find great deals, and especially with foreclosures. 

Mostly due to tenants we inherited on distressed properties. 

There are no sales of these types of properties that are in good shape, all of the sales are from distressed properties.