3 mobile homes and SFH on one lot deal

[Mariah Jeffery]

I know someone who has 65 properties and has offered to sell me any of them at the tax assessed value. For this particular county, the values usually run 10-15% lower than the market value on average, but there is a lot of variability, and some are 20-30% below. These are the ones I'm trying to find. They are all in decent (but not excellent) shape with tenants currently in them.

One of the seller's properties has 3 mobile homes and one single family home on it. Asking price: $94K. Total rents $2,000/month. All utilities paid by tenants. This meets the 2% rule, and property taxes would be pretty low (~$1,950/year). I have asked around about financing, and so far the best I can find is 20% down, 6.75% on a 25-year loan with a 15-year balloon (so I would probably pay it off in 15 years because I don't like to gamble).

I calculate the cash flow to be $388 (not quite $100/door but not bad for a 15 year mortgage; I get $534 if I plug in 25 years.) and the 30-year IRR to be a whopping 36%. This seems like an outstanding deal, but I know very little about mobile homes. Is there anything I should change in my analysis? Is maintenance higher for mobile homes than single families?

Thanks!
MJ