Analyzed properly, rental income would cover expenses and produce cash flow.I am tired of NY anyway.  

Since I am having trouble grasping this 'theory', I also have no idea of the legalities involved.  

I have run into this problem, there are a few lenders who do non-warrantable condos. try a google search. basic thing i can tell you is that as long as the ratio isnt to bad, 60/40 vs 90/10 and the loan amount is high enough 150K and up you should have no trouble. http://www.nonwarrantablecondoloans.net/

The rentals will make approximately $4,375 per month but that will only produce a positive cash flow of roughly $700....

Both can get him into serious trouble if proven and potentially cost his license.That said, he wasn't your realtor.  

So @Albert Bui if the sellers can't move out by the 60 day mark... will he get in trouble if it is 75 days?

Because he was someone that was a former classmate of my son, I asked him to call me after normal business hours so we could discuss his interests and plans.Here were some things that came out of that discussion:He has the intelligence  and the money to buy a land lease community, and it could be a very good investment for him.He knows next to nothing about owning and managing a land lease community, but as a former Lonnie Dealer, knew a little bit about manufactured housing.Because I believe, “It ain't what you don't know that gets you into trouble.

Been there, almost, done that,  involved in a golf course, no more, a marina is too much trouble and has a world of regulations on a Corps of Engineers waterway. 

The question is should I work with somebody who is already in a trouble. 

The one trouble i have is that my finishes vary greatly, depending on the price point of the house I am flipping.