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 ability to leverage your 100k over multiple projects makes it more attractive for additional RE income and also long-term appreciation.

One aspect that most people do not consider, is the increased water and sewer usage bills due to the laundry.

She knows that rent will be increasing, but she can't afford too much more.

-will Contractor bids increase and will take longer to complete remodels due to high demand for labor?

The property will be obvious more attractive without additional fee charged to tenants.

A Heloc is subject to unpredictable increases by the Fed Reserve anytime.

From a strict buy and hold for passive rental income i think it is a pass strictly based off these numbers:your rental income is 1850Your listed expenses are 888if you finance this for around 148-150K mortgage going to be paying around 800 a monththats 1,688 leaving you with 162/m cash flow without a property manager(assuming you do the work yourself)**Maybe look to move the utilities onto the renters to increase margins **CASH on Cash is about 4.8% to manage this yourself are razor thin numbers. 

Another factor will be the size of the possible rent increases before and after repairs.In our crazy market I would not be surprised if you could raise rent more than $100 a month without repairs.What is the vacancy rate? 

Per Dawn statement : sounds like I need to start working on rent increasing in 2018@Bob E.