SD-IRA Cash - buy SFH or mobile home?

[Sendhil Krishnan]

I have a SD-IRA and looking to deploy $180k into a real estate play. I plan to start withdrawing in next 20 years. i likely will not be getting financing as it would be a nonrecourse loan at roughly 9% and 30-40% down. I am more interested in high cash flow within this ira so I can reinvest any profits into some syndications. two scenarios as follows, but can't decide and would love your opinions:

1. I found a "turnkey" mobile home provider that owns the park, and will sell a brand new manufactured double wide home to me for $100k. They will find a tenant that wants to purchase and will create a note. Essentially, I would be buying the seller financing note and it will roughly cash flow $1500/mo (roughly 13%, 30 yr w 5K down). They will handle all management but tenant owner is responsible for most maintenance plus lot rent of $500. my main concern is depreciation of the asset; if the tenant owner does not execute and complete purchase i could be left w costly repairs to make it attractive to a new buyer tenant. I am also concerned with the length of term, 30 years for seller financing. Park is located near a military base and has been rated high (5 stars) on google if that's any consolation. 

2. Buy a traditional single-family house: I could buy a single-family house, with lower cash flow, but likely would have some built-in appreciation. 

3. Bonus scenario: bite the bullet and get a non-recourse loan with 30 to 40% down and buy 2? properties w the 180k. maybe cash flow is lower but ROI is better?

thanks in advance!

[Doug Smith]

Hi @Sendhil Krishnan, Congrats and welcome to the wonderful world of SDIRA real estate investing! I'm not a huge fan of mobile home investing, but many people make tons on MH park investing. I am more partial to option 2 and getting your cash flow and, perhaps some day, appreciation to offset inflation. A mobile home depreciates, but a single family home appreciates. With option 3, you do take on a bit of risk by levering the purchase, but it could pay huge dividends in the future. You've got a some good options. Let me know if you ever want to talk through options. I'm happy to do it.