Appraises at $190 today, let's say you get 2.5% the first year.Sell at $195,000 in 12 months7% transaction costs = (13,632)Gross Sale: $181,350Cash Flow :$1,320Loan: ($154,500ish)Net Revenue: ~$28,000May think about taking that win.  

The new owner's application with the mobile park office was denied after we made that transaction and she told me it was because she was new to the area and therefore unemployed at that time.

With a portfolio loan, you will be looking at probably a slightly lower "pain" level, but you will be getting much more restrictive terms. 

Where as many other midwest markets have low purchase price the rents are much lower. 

I have not done much research on the topic, because I prefer to have an immediate transaction as opposed to investing and having money tied up for a year.My question is, have any of you had a success story from tax sales?  

All in all I have been involved with 5 HUD transactions just this year where the financing was hard money. 

You may already know this, (you would be surprised how many of my clients don't before we meet) but in commercial, the buyer / tenant (in most cases) does not pay any of the commission from the transaction.

I've mailed out over a thousand mailers, targeting primarily lower to mid income neighborhoods with high rates of foreclosure.

Current tenants seem to be slightly lower class and rents are at 400-475 for a one bedroom that hasn't been remodeled since it was built in the 70's.

Ok- so it I changed the #s and ran it at a 8% (instead of 2%) vacancy rate, 10% cap exp rate (instead of 5%) , and 8% for a PM The cash flow = $363/month (much lower than $916)Cash on Cash ROI - 3.03% (much lower than the 7%)Pro Forma Cap Rate= 7.85%Purchase Cap Rate= 5.61%1.