Posted by Chuck (AZ) on July 10, 2001 at 24:21:31:
Yes, that would work… but it goes against the grain, so to speak.
Let’s say you find a home that’s worth $20k, but you can get it for $10k. You clean it up and put it back on the market. Eventually it will sell… maybe not at $20k, but it will sell.
Now let’s say that you bought 2 or 3 homes with that same $10k. Wouldn’t that give you 2 or 3 times the opportunity to profit on both the principal and the interest? Wouldn’t you be able to sell these lower priced homes much faster? With lower down payments, and lower monthly payments? Don’t forget the lot rent that will be involved here… these need to be affordable.
That’s the whole concept of a Lonnie-deal… buy low, resell at a profit (double your money), and then repeat it. Don’t tie up all of your cash in one home, maximumize your investment dollars for maximum gain.
Play with the numbers on the examples above, and then tell me which looks better to you, which is more profitable.