@Tim JohnsonThere are essentially two ways (and a few variations) to purchase this deal, depending on how the owners are selling it:As a going concern:  In this instance you are buying the business, so it is the business you evaluate: assets, liabilities, revenues (historical: 3 - 5 years), operating costs (historical: 3-5 years), future financial projections, goodwill, etc.    

Long distance investing can have more costs than investing closer to home in CA.

Hello Nicholas, there are a few drawbacks: -Complexity and Scrutiny: This approach could attract scrutiny from the IRS, as it's not a typical way to manage rental properties.

Are you going to self-manage or hire a management company?

Cost is mostly legal, with about $10K - $15K being average.

I was told that it will cost $8000 for the modular which is a 2 bedroom unit, the shipping is $20,000.

Just be open about it with your lender and they will help you out.If you intend on managing the rental on your own, I'd recommend searching the forums for tips/tricks on dealing with renters.

Yes, you can ask them to be out by 10/29, but if they don't leave what will it cost you in terms of eviction costs, lost rent, damages, etc.2.

High paying local jobs.Monthly cash flow: $306 /moIncome:  $2,250 /moExpenses:  $1,943 /moCoC ROI: 2.69%5-year annualized return 4.91%   Mortgage payment $1,394.53Rental income: $2,250/mo Expenses: $1,943Loan detailsTotal cash needed $136,739Purchase price$ 336,990Loan amount $206,990Loan term 30 yearsInterest rate 7.1%Monthly expense breakdownTotal expenses $1,943Mortgage $1,395Taxes $280Insurance $47Variable expenses  $180Fixed expenses $42Monthly Fixed expenses: $42 electricity $0gas $0water & sewer $0hoa fees $42garbage$ 0Other$ 0Monthly Variable expenses $180Vacancy $180Maintenance $0 (new construction)CapEx $0 (new construction)Management fees $0 (self manage)ReturnsNOI$ 20,412CoC ROI 2.69%Pro forma cap 6.06%Purchase cap 6.06% 

His manager did and determined it was good enough not to affect the business deal.