You do not learn your market or get experience sitting behind a computer screen. 

I'm in San Jose working with a youth corps programs that is starting to do Tiny Home construction and we are reviewing all the regs etc for California -- the hope/goal is to make quality homes to service our homeless population then the community then eventually FEMA etc...These will be on trailers - Our approach will be to approach members in the community who would like to have the extra rental income by having on elf these on their property -- no doubt there's a lot of hurdles ahead of us but we have a record of building/construction - the challenge will be the market and regulations  which I guess always is the case....

Both of them are offered as value-add plays based on a light reno which is supposed to result in rent increases of $115 to $150 per unit.I have my own thoughts on where I want to be in terms of property quality but I wanted to see if any investors local to the area or knowledgeable about the area could offer any opinion on what class these two neighborhoods/areas are and which of them would be more resilient in an economic downturn.

I can tell you from experience underwriting deals for a number of institutional and semi-pro investors that they have achieved IRRs greater than 15% and yields greater than 8% in markets like San Francisco, LA, NY, and DC that advertise 4% cap rates.Markets with low cap rates typically share the following characteristics:1) Strong rent growth, driven by2) Strong population growth, driven by3) Strong job growth4) Low vacancy5) High per bed rents (lower operating costs as a percentage of total rent)6) Good property management options7) Higher quality tenants (young professionals like myself will rent in SF until their late 30s to early 40s)To achieve returns in these markets, investors buy buildings with significant value-add or development opportunities on very low to no leverage (debt), and refinancing the deal after stabilization to cash out.

Quality (A is remodeled like new, B is a clean older house with some updates, C is a dated house but not bad, D is dated and needs work, E isn’t even worth caring about… D actually isn’t even worth noting)3.

Finding a quality buyer / tenant for your MH is your problem, then will the office approve your prospect in a reasonable amount of time???   

If you score high enough to be deemed a quality recruit, you have some leverage with the recruiter.

What kind of tenant quality live there or would live there?

I first however verify income requirements and conduct a throughal phone screening.

Its a 2/1 on one side and a 1/1 on the other, which changes the rent profile significantly.Neighborhood is very mixed in quality...Roof had been done by the current ownerAdding just these, with the "asking price," makes this place negatively CF.