When you work at a large corporation (national or global) you learn a lot in your role, but also by osmosis, just by observing other people and seeing how projects are developed, business is done etc.

You will also have to factor in the closing cost for the new loan.

Heck, some people might even pay more for the 'cool factor' of living in a 'small home'....I'd give it a go since you're a veteran of this RE stuff.

I think another factor here in determining whether its a good investment is your age and your goals. 

Credit is a factor as bad credit may limit options, or may have the lender require you to put 10 or 20 years of taxes and insurance into escrow. 

To meet this requirement, you must spend at least 750 hours per year actively participating in real estate activities, such as property management, development, or acquisitions, and these activities must constitute more than half of your total working hours for the year.

If the developer can do better than 35%, then the deal becomes even more profitable for them.

The systems you have in place to handle leads, follow-up and your sales processes are also huge factors.Another factor is what is your monthly marketing budget?

As I mentioned every person and their criteria is going to require a different loan program and each loan gets risk graded based on several factors.

Hi Mark, I am a founder of a startup helping RV park developers source land.