Newbie: Mobile Home Investment Analysis?

[Nate A.]

Hi, I’m looking to get started in real estate investing. My goal is to start off conservatively focusing on cash flow.

I’ve found a mobile home deal in my hometown in TN. I understand that mobile homes do not appreciate, but the cash flow and low price of this deal look promising and it would let me “get my feet wet” before moving up to a larger investment. 

Assuming I could work through the challenges of a loan on the mobile home here’s what the numbers would look like:

• Purchase price: $30,000 (6,000 down)
• Property includes: 570 sq ft. single wide + 1 acre of land (the land is two lots. The property next door is zoned for a duplex)
  Mobile home is currently rented at $400/mo. (Market is closer to $500-$550)
  

Current Cash Flow after Expenses $221/mo. 

The extra lot would give me the ability for extra options: sell it to recoup down payment, add one or two other mobile homes, or possibly consider a duplex at some point, etc.

The property is in a safe, quiet community 3 minutes from retail and restaurants. The town is also a college town.

I’m also thinking with us heading into a recession it’s hard to find property that’s much more recession-proof than a mobile home. 

I welcome any thoughts, feedback or direction on this. 

Thanks!