My clients don't want uncertainty they want good clean deals with fresh title insurance etc.. so just like those that buy turn key homes .. if they went out and sourced the house themselves took care of the rehab themselves self managed it their return would be higher.. same thing goes with those that want to source notes and or NPN on their own..

Since tenants do not pay for the water, they don't care about using it sparingly. 

Over 90% of the houses on this street are free and clear and they take care of their community.  

I am ready to sink our retirement funds about 600k into this business so of course we want to be careful.

.  ;-)  Time will take care of you over the long run.  :-)

Always have the option of a cash out refi, since it's a loan it's not taxable.You'd have to plan around and be careful with a 1031 though ...

So, be careful and make sure you triple your repair budget/rehab expense.Don't get me wrong, if done right, these can be cash cows! 

@Aarti Bambha Be very careful about searching by zip codes in Indianapolis. 

Just be careful.

I don't really care about the difference between the lot rent and POH because, from the park's point of view, the owner of the the 20 POHs is just another tenant, even though the the owner is the same.MHs have a "Blue Book" value which makes valuing the "POH rental business" pretty easy.