Perhaps there is a simple calculation people use or maybe some napkin math. 

So, I think flipping more than 2 in your first year is going to be tough, but again, I don't flip, so just doing a little back-of-the-napkin math for you.

With some quick back of the napkin math, this deal looks more like an 8% cap deal and although it is smaller than I would pursue, at least the homes are all tenant owned.

Not sure why you would like to change the sanitary sewer if the problem is with the domestic water line, unless you are having issues.   

Hey Michael, it sounds like it would make sense just by doing the back of the napkin 70% rule as long as the construction costs stays tight, even if it runs over you'll have wiggle room and worst case you may only have minimal into the deal.. without seeing the property seems like a nice deal.

A text offer is one step above verbal and 2 steps behind a signed cocktail napkin.

If I were you, I call the company (City) that service the main sanitary pipes to check out any issues in your neighborhood. 

@Brenden MitchumSo would it be fair to say that your formula is a 'back of the napkin' way to initially evaluate a MHP's broad based value?  

@Hunter N bougie as long as it is written a contract can be on a napkin.

Back of the napkin analysis for $600 rent is $300 net cash flow prior to debt service, using the 50% rule.