Am I on course for my Mobile Home investment strategies

[Jason Hill]

I've been reading as many forum posts as humanly possible about mobile home investing as it is a huge market in my area.  With that said I think I've decided on a couple strategies but, want to make sure I'm not missing any gaping holes.

Strategy 1:

Purchase individual mobile homes on land not in parks, as there is a swath of these in my rural area, for cash.  I would then owner-finance the mobile home to a buyer using a MLO.  The buyer would then pay the note on the mobile home only and a also pay a lot fee.

Pros:

• I would own the land and therefore benefit from any appreciation.  - Appreciation is not the goal, it's gravy.
• I would receive lot rents for said land resulting in my cash flow.
• I would receive payments on the mobile home.  If they default: foreclose, repeat.
• The buyer pays their own utilities.

Cons:

• If the buyer is able to satisfy the mortgage on the home, then defaults on the lot rent I have only one real option.  Move the home.
• Without proper analysis, lot rent alone may not cover operating expenses and still provide sufficient cash flow.

Strategy 2:

Simply owner-finance the home and lot using a MLO. Pretty much the same as a SFH but, technically two separate titles.

Thoughts?  Which approach is best for cash-flow vs. long game?