We're looking for buy-and-hold long term rental properties that need minimal rehab work to be rent-ready.If anyone has any banking recommendations in Michigan I'd love to hear them.

Rents for $850 which is very top of rents for its neighborhood.

I have owned and rented a house in New Orleans the past 3 years. 

He says he doesn't have the money to pay the rent and to get a new place.

I will advise to buy a home with many rooms, your income will be higher. if one moves out, you have the other tenants paying the rent, which is different if you rent to only one person.

What are the legal problem I can face by renting non-confirmed unit?

It sounds like you won't have any trouble qualifying..In Oregon there are some tenant laws that can restrict active CAP rates, but those with current market rents (or that can attain them near term) can approach double digit return rates.

that could sink the ship is my analysis of market rents.  

My experience is that mobiles/manufactured homes fall into three categories, a. still on wheels treated as a vehicle and are are on rented spaces b. wheels removed, the unit is put on a foundation and skirted, on rented space c. wheels removed, the unit is put on a foundation and skirted on owned land and treated as permanent, which qualifies for a mortgage.

So I'm trying to weigh selling my rental vs keeping and renting out through a management company.