Not trying to discourage you from these type of deals, just want you to be mindful of the challenges you could face coming from my experience and the many investors I personally know.AssumptionsDownpayment: 20%Closing Costs: 3%Amortization: 30 yrsInt Rate: 4.3%Materials: 8% (plug)Maintenance: 8% (plug)Capex: 10% (plug)Makes sense: Purchase Price @ $160k* I hope this helps and makes sense.

I'm debt free, and save/invest quite a bit of my income, so I can accept a property without cashflow (or even some negative cashflow) if it makes sense over the long term.

Thank you all for your responses and I will definitely reach out to those you recommended and see what makes the most sense for us.

Tearing down a house at 220k and having a new larger house built for 150 to 200 per sq ft just does not make financial sense if its Arv is 500 to 550 k.

Hopefully, that makes sense. 

You have to analyze your land costs where the house is being moved to, house moving costs, and then costs to drop it on a foundation and connect everything up to where it is working correctly.If all of that is close to an existing house with land already then does not make much sense to do it.

Now your scenario makes a little more sense.  

Just made sense to do it that way to me.

Just made sense to do it that way to me.

He knows how to do all of that stuff but he wants me to do it to learn, which makes sense.