I think your numbers for repair and tenant replacement are too low..  

I watched a webinar the other night by bigger pockets and the presenter showed a buying houses for a low cost (75,000) and renting for about 1000 USD.  

Home Depot, Menards, and Lowes all sells very inexpensive plastic miniblinds.

The one with long term tenant was at very low rent, $800/ month!

Here are the key data points:Park info  Located in Alabama61 lots25 owner occupied homes18 park owned homes (14 currently rented; 4 currently being repaired and should be rented soon)18 vacant lotsAvg lot rent - $160 (unknown what the market rate is but it doesn't sound like there has been a rent increase in at least a year, maybe more)Avg POH rent - $400Expense ratio - seller claims 26% but I'm estimating 35% for the lots and 50% for the POH'sCity water - individually meteredSeptic - good condition (allegedly); a couple were pumped last year, none this year (no lagoon thank heavens)Seller claims gross income $130k, expenses $30k, and NOI $100kI calculated gross income of ~$135k, expenses of $60k (55% on POH and 35% on lot rentals), and NOI of $75kOther infoMom & pop seller, but park is listed with a brokerPark has been on the market for > 3 years (recent price reduction)Greater metro area stats look goodPopulation = 115kMedian home price = $105kUnemployment < 8%Household income > $40kHousing vacancy ~ 15%Closest Walmart is 7 miles awayFreeway is 1.5 miles awayNumbersMy valuation is coming out about $80k-$100k under the seller's asking priceWith conventional financing I'd be hoping for a purchase price of $500k, $100k down @ 6% over 20 years (not sure if this is plausible or not)Assuming that financing, I'm expecting net cash flow of $40k (after debt service)Upside potential is in raising rent and filling the 18 vacant lotsFollowing the same assumptions above, raising rent $50 (if the market supports it) would change NOI to ~$90k and net cash flow of just over $50kFilling the vacant lots could potentially increase gross rent up to somewhere between $150k-$200k, depending on what the appropriate occupancy rate is for the areaWithout verifying any of the above information (haven't offered anything yet so there's a lot of DD left to do), the deal seems to make sense. 

The spread enables me to get low or no cost insurance.Lastly, this isn't my personal example but my partner used notes to pay for the addition on his house.

I am looking at two properties next door to each other which if I could get a 33% reduction I could be at 1% rent to loan. 

THat CCR is low isn't it.

(not uncommon).Sometimes you'll see a place in good condition (but with low reserves, indicating they spent the money to renew the place); or one with high reserves but in dated condition (sign of a tight fisted board).

We found that after 5 it's a pretty low conversion.