Manufactured Home for cash flow in SoCal?

[Lan Nguyen]

Hi BP, I am a newbie so bear with me. 

I recently bought a SF and house hacking it with family members, it is negative cash flow of course, but not too bad.
I am qualified for an FHA loan for another SFR or MFR.
But it is just too rare to find one that can cash flow. And betting on appreciation is risky because CA market is all time high.

So I am checking out investment in Manufactured Home (MH) in SoCal areas like Cerritos, Anaheim, Irvine.
The rent from my research shows that normal SFR in those areas for 3bds/2brs is approximate $2500k.

The land lease for a MH with the same criteria is around $1200k - $1500k, and the house is usually 40k - 100k.

If conservatively saying, if renting out a MH for $2000k (often it is cheaper than normal house) then

Rent - (Mortgage + Maintenance)  - Land lease ≈ $300k

So would $300k cash flow is a right calculation, am I missing something, is there anything I need to watch out for when using MH as rentals?

MH is usually depreciated, so should I stick with normal SFR and MFR until I find something that can cash flow?

Every input are appreciated. And if you are familiar with the areas and have done something similar I love to get in touch and learn more about this.

[Robert Clifford]

Lan,

there may be people that don't have the credit to get into a home at $2000/mo so renting may be a good option but the number of people looking to get into a manufactured home is definitely a smaller group of people, making it harder for you to rent out that type of property. This is where a property manager can help you and advise you of what to get into. I would suggest that if you're willing to look at Anaheim while you're in SF, then why not look at a place outside of California for investment opportunities where the market is still not so high? 

Also, assuming that your calculations are correct, there are a number of other expenses that you have not accounted for. So in reality, I think that you're overestimating your ROI.