Analyze Potential RE Investments

[Robert Burns]

I'm working on 2 mobile home deals in a MHP and need another opinion of the investment value.

1. 2005 SW 3Bd/1Ba, good condition selling price: $15,000 already rented for $550/mo.

I can purchase this mobile home for $15,000 but it requires me to withdraw the $15,000 from my investment portfolio for with a 15% tax income tax penalty. So I would be withdrawing $17647 to buy the mobile home and then earn $6,600 yearly rent payments.

2. 2007 SW 3Bd/1Ba, good condition: selling price: $15,000, already rented. This tenant wants to convert the rental to a lease purchase.
Lease Purchase Overview:

Lease Purchase Price: $21,500
Down Payment: $1500
Monthly Payment: $444.89 ($20,000 financed over 5 years at 12%)
Investment W/D: $17,647
Total Received (5 yrs)= $28,193
Net Profit= $10,546
% Profit= 60

I would appreciate any comments, feedback on these 2 deals.