I wanted to start this conversation because I’ve seen too many investors (including myself) get into serious trouble due to a lack of cash reserves.

Here are the key numbers:Potential purchase price: Mid-$400k rangeAppraised value: Estimated at ~$500kRehabbed comparable properties (comps): ~$580-600kMonthly PITI (with 5% down, including mortgage insurance): ~$3400First-year PITI (with 2-1 buydown): ~$2900Monthly income (after taxes): ~4-5kLiving expenses (utilities, groceries, etc.): ~$1600Savings available: ~15-20% of the purchase priceCash to close: ~$34kRehab estimate: ~$34kRemaining reserves: ~$20-25kTo fully fund the rehab, I’d need to come up with an additional ~$15k in the short term, which I anticipate paying back quickly once the rental portion is generating income.

Most lenders out there (myself included) cannot finance mobile homes.

There are many service companies that will manage seller finance notes including the payments, escrow accounts, and documentation. 

Penalties of these Federal charges may include:30 years in prisonUp to $1 million in finesThey have a "statute of limitations" - (with a third "T"  ;-) of 10 years from the date of the transaction - 10 years from now, you could get a very nasty call and hopefully, you put your reserve money in a good account that grew to cover legal expenses**********************************************And the universe could blow up as Doc says in Back to the Future " But, granted, that's the worse case scenario." 

How many units are you including in the $67,200? 

My budget for the first property is $50k ~ $100k total cost (including rehab).

We have purchased many hud properties including numerous ones where they "countered" and we did not accept the "minimum net to hud" sometimes a week to a month later they accepted the last offer we had submitted.

With all of our experience, including my husband being a residential drafter and designer.

Good or if there any red flags?