Mobile home purchase (on rented lot) for single family home investment

[Jeff Ryan]

Hello,

   I recently partially inherited a mobile home, along with two siblings.  This is a 'nicer' mobile home, double wide, 1998, shaped / looks more like a 'house', attached garage, on a very beautiful private lot.  It has a value of approximately $120k, to be confirmed with an appraiser yet.  I would need to buy my two siblings out, so my approximate purchase would be $80k.  I have talked to the park management, and they said current owners do allow renting out as a rental, but the tenants would need to be approved by them.  They did comment that the previous owners did not allow that, and I know through some research of my own that many parks don't.  This park changed ownership about 1 - 2 years ago.

In the metro-G.R. area where this is, I am, it is difficult to purchase anything that cash flows to rent otherwise, and it is a very hot market yet. rentometer.com says 3 bedroom , 1.5+ bath (this is 2), is about $2,300/month. With furniture in there we'll need to do something with, I could offer it furnished too. The lot rent is $700. If I pay for it initially with my primary residence HELOC , currently at 8%, the interest only payments would be $640, so $1,340 monthly expenses mostly. I'm unsure if I would use property management at this point, and there would be some insurance. There is some sentimental value I need to be wary of based on the inheritance, but it is a very nice home on a very nice lot, and it would be nice to own another rental in this area.

   I know there has been some other forum posts on this topic, but I was hoping to note my circumstances here.  For some others in the Bigger Pockets community, is there anything else to consider, what do you think, 'do it'?  Thanks to this community as always.