I recognize if you compare this rate to F/F prior to q2 2022 it looks terrible. 

Do realize since they are mobile homes, and have VIN numbers you are not able to take out a tradional mortgage on them not to my knowledge.

But, like everything in lending, when you "risk layer" the rate/terms are usually a little worse.

It will tell you how much loan you can access and the interest rate. 

Let's break it down with precision:The "Pain" (At First Glance):Your $2.8M sale splits out as:Building (§1250): $2.3MPersonal Property (§1245): $500KOriginal Basis Allocation:Building: $1.6M (depreciated over 27.5 years)Personal Property: $400K (fully depreciated)Building Depreciation:Annual: $1.6M ÷ 27.5 = $58,182Total over 10 years: $581,820Gain Breakdown:Building (§1250):Sale Price: $2,300,000Original Basis: $1,600,000Less Depreciation: ($581,820)Adjusted Basis: $1,018,180Total Gain: $1,281,820Unrecaptured §1250: $581,820 (25% max rate)Capital Gain: $700,000 (20% max rate)Personal Property (§1245):Sale Price: $500,000Adjusted Basis: $0Ordinary Income: $500,000The Strategic Play:Remember those suspended passive losses you couldn't use?

Super low vacancy rates in SD, even STR's. 

When financing these projects, keep in mind that some lenders may require a larger down payment or charge higher interest rates due to the increased risk.

I believe it is 50% down, rates around 13% and term around 5 years.  

Generally - the depreciation on the structure, mortgage interest, property taxes, repairs & maintenance, insurance, property manager, utilities, vehicle expenses (mileage), professional fees (reports/CPA), home office (office supplies, percentage of utilities, continuing education).

Listen to the audiobook “The One Thing” to help prioritize your time and maximize your outcomes.The cash flow may get wiped out but the tenants are still paying off the mortgages and rents will still continue to rise, so it’s not all bad!