They are very flexible and very expensive. 2% a month in my line of business is nothing.

After deducting all expenses, including the time you spend managing / cleaning / repairing / etc., are you making more money than you would as a long-term rental?

Starting out it can be overwhelming for Travis County but as you learn the niche you will find the right documents to search for.

I'm just starting off and these leads are expensive for me!

I am not sure about your area but around me it is not a common expense that a tenant would pay, so would love to know the reactions the tenants have and if you experience higher vacancies. thanks 

As a percentage your math is probably right but with a less expensive property I think you need to skew the percentages up.  

Bake the cost into the overall expenses for the rental.

Hi @Guido BertoliA big part of buying these types of properties is the slow compiling of data of what expenses should be in your target area.

Do you think the higher return outweighs the risks (such as crime, vacancies, and maintenance expenses) when compared to a property in say downtown or midtown Sacramento which seems to me a pure appreciation play right now?

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.