Mobile home on foundation - ARV?

[Steven Lalonde]

Hi! My name is Steve, I have been checking out the BiggerPockets site and podcasts for about two months now and am excited to get started in real estate investing. I currently am house hacking a duplex, I live upstairs with my two boys in a 3 bed 1 bath, and rent out my basement suite, 2 bed 1 bath. I get $1000/month in basement rent.

I am looking for advice on my "first" rental property deal analysis. I want to jump in but am scared at taking this risk. Please help!

I am thinking of purchasing a 3 bed 1 bath home in a C+, B- neighbour hood. The house is actually a mobile home with a covered metal roof on a full unfinished basement foundation. The mobile home part of this deal scares me a bit. The full unfinished basement could be a 2 or 3 bed, 1 bath rental unit. I am thinking of separating the electrical with each suite having their own 100amp panel as well as their own hot water tank. Upstairs will be gas furnance, downstairs thinking baseboard heat.

The purchase price is $140,000 with 20% down conventional bank financing. Im looking at getting a construction loan or second loan for the rehab, around $80,000. All said and done, I am thinking ARV is around $260,000, but again, scared on this house being a mobile home, even though it wont look like it when it is rehabbed. Plan on Refi after rehab done and rented out.

Based on these numbers, does this sound like a good deal? How will I know the ARV will be what I think it will be? Mobile homes in my area are general priced less then

Looking forward to hearing some advice!

Cheers,

Steve