There is a guy by Green Lake that does a bunch of these, he got like 20 homes when a Highway went through, he made bank, dropping them on lots and rehabbing them, but you will need to carry the expense for a while. good luck!

Are you hiding a payment that makes it unlikely you will be able to carry all your other debt with the mortgage payment? 

What about carrying the note and collecting payments that way?

Also, cash out of pocket will be 6 months carrying cost (about 14K) on hard money not to mention closing costs on the first and second closings.  10K the first time, 6K the second time conservatively to make 193.SorryStephanie

But if you can find someone willing to carry financing for you, thus allowing you to skip dealing with the banks altogether, that's even better!

Carrie: Is the property in Missouri?

My argument on mine has always been that I want to do the 1031 in order to carry forward my basis from the old property. 

It goes something like this, I buy "off market" houses using Subject To and Wraps, put $50k in to pay them their equity, closing costs, carrying costs (and reserves just in case.)

. % does not work.in our production stuff like we do in Oregon  were the end product is now in the 450 to 500k range  1/4 to 1/5 is what you need for land cost to keep your margin at 15% of gross or there abouts.. but many builders are only making 5 to 10% of gross if that , depending on where they get their construction money.our Gresham project Lennar offered me 130k per finished lot  and we are selling houses right at 450k.. so they were paying top dollar but they build 400 plus houses a year in this market so their margins are much tighter and they are not carrying ANY dirt or land.. they only buy when they can go vertical GENERALLY speaking as I say this they have just gone into contract of a few parcels next to one I am in process of developing 160 lots on.. but basically that's how it works.

Again this is my first owner carry deal any insight, tips, or past experiences would help me out as I get started.