Mobile Home Investment

[Mike McKinzie]

I have never purchased a Mobile Home so I am going to post this here. A co-worker of mine used to live in this mobile home but then she and her husband got a job as "ranch managers" and moved onto the ranch. They rented out the mobile home. So here are the specifics:
1997 Mobile Home, 3 Bedroom, 2 bath, 14 X 60
In a park with space rental of $270 per month (includes water, trash, sewer).
Yearly taxes: $60.00
They paid $35,000 for it but are willing to sell it for what they owe, $24,000.
It was rented to a Section 8 tenant for $800 per month. They had to evict the tenant because of not paying rent, so it is currently vacant. There is some frozen pipe damage under the mobile home, I don't have an estimate. I am guessing about $2,000 in repairs. The reason they want to sell it/get rid of it is because they are paying 16% interest on their mobile home loan, therefore, their 'net' each month was only $75.00 but it is currently vacant, so they have to pay $725 between mortgage, space rent, utilities, etc...

Just looking at the numbers, let's say I put out $26,000. I get $800 less $300 for space rent, taxes and insurance. Tenant pays propane, electric, etc... So a net of $500 a month or $6,000 a year. This is a 23% return, cash on cash. Even using the 50% rule, giving $400 a month, you get a return of 18.5%, cash on cash.

What am I missing here?