Its a home-run, especially in today's economic climate.

If you need to compete in thei climate, I would try disclosing it on the HUD first.

My feeling is that milder climates have an overall lower percentage than harsher environments.

I can tell you in this credit climate don't believe anyone if they tell you they can get you any cash credit if you just pay them "x" amount of dollars for their program.

If so, what do you feel is the deal "climate" here?

Moderate climates like FL can be lower, but insurance is high and you're close to the coast which has other maintenance issues.I'm unclear on the loan terms, so I'll assume $770K, fully amortized for 30 years at 6%.

If I make some modifications to unit sizes (another $8k investment) and offer some climate controlled units and better management I feel that I can increase net income to $30k year at 75% occupancy.I know the owner is motivated and just wants out, I feel I can get him to accept $120k or less with owner financing.

The earth's climate is ALWAYS CHANGING.

Given the current lending and credit climate, how much cash reserves would you consider enough to start a business flipping homes?

The investing climate is always dangerous, there are no guarantees.