Mobile Home Analysis and Advice

[Thomas Redinger]

I am seeking my first investment property after spending months researching/educating myself on real estate. However, I came across an unconventional investment opportunity in a duplex manufactured home for $9,500. After talking with the seller I found that both units rent for $450 (1 unit has a tenant while 1 is vacant), and rent for the lot is $350 per month but also includes the water and trash bill. I would pay for the home in full so no mortgage would be required and tenants would pay additional utilities. After paying insurance, vacancy, PM , and repairs, I am left with a monthly cash flow of roughly $300 and a CoC return of almost 40%.

I have not researched much bout manufactured homes and the differences between them and regular homes and have a few questions. Are there restrictions on renting the home since I will not be living in it and do not own the lot? Is there anything I m missing with my analysis? I also see this as an opportunity to learn more about the mobile home park owner and potentially build a relationship. Thank you and look forward to learning more from your experience and knowledge of manufactured home investments.