Looking for your advice on this deal (my first property)

[Molly Hane]

I’ve found a “deal” but I’m having trouble understanding if this is a good fit for me. I’d love to hear some perspectives from more experienced investors on what you think about the info below:

$75k for a 5bd 3 ba manufactured home that rents out each room for $500/month

Pros:

1. Reliable tenant payments
2. Cheap purchase price relative to income generated
3. Potential for ~16% CoC ROI

Cons:

1. Long distance investment (requires property manager)
2. Month-to-month leases per bedroom (& no deposits collected)
3. Located in Utica, MS – not a thriving market for rentals
4. Manufactured home – not sure this type of home will build equity
5. Unsure what kind of tenants live here

[Caleb Brown]

Manufactured might get tricky on financing so I'd chat with a lender. Do you have experience with renting rooms or have a PM that can handle that? I would be leery in doing it out of state and with it being your first one. A lot of moving parts and most PM's don't do it. Can you locally house hack and do the room by room strategy?