Example: purchase price =  199,000monthly gross rents =  265550% of 2655 = 1327Mortgage payment= 8051327-805 = 522 estimated cash flow monthly Cap rate 7.9%With 50,000 down, that gives me a cash on cash return of 12.5%I realize the 50% rule is a very basic estimate any many things can alter this, but do my numbers seem correct?

I was referring more to price of houses vs income, which translate into demand for residential purchases. 

It really helps to know that there is a book that covers mobile home investing in detail.When I originally made this post I was looking for some concrete steps or an action plan for determining if this is a deal, the acquisition and exit strrategy.I'm a pre-foreclosure investor and wholesaler mostly and was interested in how that translates over to mobile homes.I may read the book eventually and may end up passing on the lead.Thank you again for your time.

I'm going to translate this for you, @Justin Nothem as Bill gave u some "code" to decipher.If you are an owner occupant, and you are buying on terms, like a note and a mortgage, the SELLER has to abide by the ATR rules of Dodd Frank.See http://www.consumerfinance.gov/regulations/ability-to-repay-and-qualified-mortgage-standards-under-the-truth-in-lending-act-regulation-z/If you are the SELLER, the penalties are like "3 years payments + attorneys fees + court costs plus down payment."

My thought process so far:-Total cost of the home: $400k translates to $2500/mo with $80,000 down-price of the home seems in line with comparables in the area-similar homes on AirBnB and AirD.na go for $400-600/night-assuming a rate of $420/night it would take 72 nights to cover the mortgage-a quick availability check on AirBnB makes that seem easily doable.

For example, what percent of money from either side of the partnership is put in, and how does that translate to split of prophets if the work load between the two are different?

If you are still in your inspection period and nothing in the addendum concerning the roof altered this, then yes.

You can (generally, check local laws) implement or alter the house rules to some extent, with proper notice to ALL tenants.

Translation: most bird dogs operate illegally.If you want to hunt down deals then consider just getting them under contact (sales agreement or an option).

Yes that 1.67% is monthly which translates to 20% annually.