5 Unit Manufactured Home - Deal Analysis

[Blayke Silveira]

I am currently analyzing a deal in Idaho that includes 5 manufactured homes that would be owned by me and not the tenants. The numbers seem to work but I do not know if there are other things I should be factoring into the analysis. So far I have this:

Purchase Price $225,000

Down: $45,000

Rent Roll -$3300

NOI - $1652 (After deducting 5% Vacancy and 25% for Maintenance and Property Management Fee)

Monthly Net - $900 

Resulting in a 24% CoC Return and 8.82% Cap Rate. Some questions I do have: Is there some thing I can work out with the tenants so that they will own their own homes in due time? Also will this be considered a commercial deal since it has 5 units. Also what are some other things I should be aware of when investing in Manufactured Homes? Thank you so much for any information you can help me with.