They are buying at a 5 % cap rate with a fixed 5.7% loan amortized at 30yrs and first 2 yrs interest only, and they believe that they will sell at a 5% cap rate as well 5 long years from now.

Rented my house we originally lived in 12 years ago because we couldn’t sell it when we moved and that’s how we got started. 5 years ago we made a plan and an effort to accumulate multi family properties and did that.

In my experience, usually mobile home dealerships sell new homes and work with lending companies to provide financing.

The number usually varies from 10-20% depending on credit score, property analysis, etc.Some lenders will work with any level of investor experience, credit scores as low as 660 and can close in as little as 10 days (there are loan options for 640-660 credit scores- they require 20% down).Another good thing is interest only and 6-24 month loan terms- you can refinance by selling or refinancing to a long term DSCR rental property loan at any time once you complete the rehab.Once the property is ready you can sell it or if you want to keep the property as a long term investment, you can underwrite the loan based on your income /debt to income (DTI) ratios or you can go the DSCR route where the loan is underwritten based on the actual or market rents from the appraisal.DSCR loans won't use your income to underwrite the loan.DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.Here's a bit more in detail about how rates are calculated for DSCR loans:1.

Investment Info:

Other other investment.

Purchase price: $9,100

Cash invested: $9,100

Potential developer property to build and flip

While some of us want to preserve it within the family, others, including my late grandfather's wishes expressed through my grandmother, are inclined to sell if we can't make it financially viable.The house itself is a 1 bedroom, 1 bathroom dwelling.

If they are farmers and want to keep the land, why are you asking if they can sell it? 

I am selling a property owned by the SDIRA.

First option is to sell the house immediately and utilize those funds (~100k) to supplement the cost. 

I've been acquiring and selling real estate for well over 20 years but I've never acquired or built a duplex.