There are so many items you need to check on a mobile home park in due diligence and we wrote a course around it.Here is a short list of the most "deal-killing" items:1) Test ad.2) Certificate of Zoning from the city or county.3) Phase I environmental report.4) Review of last 3 years of P&L (and tax returns if available).5) Forward forecasting budget.6) Rent roll and payment history.7) Review of the water, sewer and electric systems.8) Size of each lot.9) Confirmation of which homes are occupied and which are vacant.10) Rent comps on all competing mobile home parks.11) Study of the metro market.12) Survey and title.Mobile home parks are much more complicated than they look.

Start figuring out who you want to work with on financing, REI agent, boots-on-the-ground etc.

Do they have any legal grounds?

Yes you can if you meet the requirements.If you are not a real estate professional, the passive activity losses (PALs) generally are deductible only (1) against income from passive activities, (2) when the entire interest in a passive activity is disposed of in a taxable transaction, or (3) under the $25,000 rental loss privilege for qualified rental activities (subject to the $100,000 AGI phase-out).The general is a rule allowing up to $25,000 of active participation(see below) rental real estate losses as a deduction against nonpassive income.The taxpayer must make management decisions with regard to the property, have at least a 10% ownership share in the property, and the cannot be a limited partner.

With a reliable tenant pool and well grounded property appreciation, you typically won’t have to worry about rental prices falling—there is a good chance you’ll be able to get even more for rent than you otherwise would.

I would recommend going forward with your project, on the grounds you still make enough on your spread for you to be happy.

I tend to fall in love with my deals, but my mentor keeps me grounded and realistic.Usually, before selling a property, the sellers will lower their expenses intentionally to increase their NOI which inflates their property values. 

Just wanted to introduce myself to the group and give a little bio of who I am and where I am at currently.I have not yet invested in a property apart from my primary home.I’m currently in the learning phase with the real estate world although i do have some knowledge within the purchase/closing world of mortgages since I do loan closings as my side gig from my regular 9-5 job.

Hi Tony,Maybe think about getting with an EXPERIENCED/SUCCESSFUL "Boots on the Ground" Partner.You put up some of the Dough, he/she puts up some of the dough (skin in the game) and also the Go.Good Luck!

If anyone is looking for "boots on the ground" in this great community.