If it makes sense, its worth moving forward. 60%, 65% , etc are just guidelines for real quick spur-of-the-moment calculations (in that case, use whatever number you want.

Want to make sure I'm fully grasping the concepts and calculations so that I can better analyzie future deals.

Working on OP numbers.Rent $1150Expenses 50% = $575Hoa fees = $300Debt service = $375Is a loss of $100/month.Now, OP doesn't state whether his debt service is PI or PITI, I calculated PI, if it does include TI, then numbers don't look as bad.

You have to manage risk... or take calculated risks by putting controls in place to mitigate catastrophe.There is a ton of information on how to invest money in real estate around here.

No clue what so ever.So if we adjust the values with just the sqft:Comp 1: -$29454.96 = $100,545.04 (Minus 1 Bed Plus 1 Garage)Comp 2: +$6368.64 = $114,868.64 (Minus 1 Bed and Minus 1 Bath)Comp 3: -$15523.56 = $114,476.44 (Minus 1 Bed)Comp 4: -$23617.04 = $107,382.96 (Minus 1 Bed Plus 1 Garage)Okay, here's some more calculations assuming a 1 bed or bath is worth $1,500 and a 1 car Garage is worth $2,500 on top of the previous calculations.

Determine that by calculating the average net income over a 12 month period from the financial statements.

MRE's might be your best bet based off your criteria.

Appraisal standards state that if a home has 2 of the 4 walls below grade (i.e. up against earth) then it is not calculated as part of the Gross Living Area.

I bet his Dad could qualify for a streamlined HARP program loan through his current lender with minimal documentation, no appraisal and minimal loan fees.

For a quick test to see if I am interested in checking out a MHP I take the occupied spaces and calculate a gross rent from only the occupied spaces and then multiply times 60% to eliminate 40% for expenses and have a rough NOI to divide by the cap rate I desire from the MHP and arrive at a max price to offer.