My guess is if you can make the interest rates work, there will be dozens of these available in about 2-3 years when the loans start maturing.Good luck and best wishes. 

I also still have 60% of my line available, along with current savings to do another deal.With respect to paying off the seller note, I have been working with a number of people discussing private lending.

We have HELOC money available from our primary and one of our rentals at about this same rate, so that could be a backup plan.

On a positive note, 100% of the purchase price should be available for depreciation since there is no land associated with the purchase.I see a number of other double-wide manufactured homes available in GR, many priced well below $120K.  

Prices in relation to rent are too high to have the cushion that was available before. 

As already mentioned, he wouldn't be able to use rent from roommates to help qualify but based on the numbers you shared there should be a VA option available considering how much flexibility there is. 

You want this to be your backup plan if things take longer than anticipated, you do not want to dip into personal credit cards so i would use a heloc to help with down payment but try to keep a nice available balance on a heloc as your insurance policy. 

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).

Buying turnkey Section 8 rentals which are also positively cash flowing is wonderful, but you cannot calculate how much of that will be available at any given time. 

If anything, have a small sign in front of the house that says who the builder is and phone number (that's common for contractors to do, and also so that neighbors feel they have some to call if there is dust blowing from the site or whatever), and then you may have people calling you asking about availability (people always want something more that they had to chase and can tell their friends the story of how they got the house).