You need to calculate your "event horizon" meaning how many years you will hold the property.The 50% expense many use comes from over time when an asset is newly built or recently rehabbed with everything replaced that cost will be low.

It's a 4 bed/2 bath built in 2006.

In the case of our last purchase, we paid 1.2M (on a property listed at 1.35M) since they only built it as 7 bedrooms total - during first walkthrough we identified the ability to easily, and legally, add 3 bedrooms to the mix. 

I was wondering if I could get some feedback from seasoned MHP investors on the following potential deal:21 Owner Occupied Lots @ $225-$235 5 Rentals Units @ $295-$365 22 Vacant Lots 1 Stick Built Home Sold on Contract @ $595Average Monthly Income: ~$7,005 which equates to ~$260 per lotGross Income Income: $84,060 Expenses: Landscaping / Maintenance: $8,350 (9.93%) Insurance (liability only): $250 (0.30%) Real Estate Taxes: $8,400 (9.99%) Utilities: $2,700 (3.21%) Administration: $1,800 (2.14%) Waste Management: $4,600 (5.47%) Total Expenses: $26,100 (31.05%) Net Operating Income: $57,960Assuming a 10% Cap rate the value of this property today would be $579,600. 

I am looking at a 700 sq ft SFH 2/1 built in 1933.

I would get "market value" for my land, he would develop the 3 houses that can legally be built, adding 18% onto the building costs as his GC/developer fee, and then we would split any profits over that.We don't see eye to eye on what the "market value" of the land would be- he says it's what I bought the place at auction for, i.e. $212K.

Especially because I do not want to lose the momentum and motivation I've built up so far.

Is it a smart idea investment to buy a SFH property with built in equity, make improvements to the home, and hold as a rental?

Is it a smart idea investment to buy a SFH property with built in equity, make improvements to the home, and hold as a rental?

There is a huge difference between a duplex built in 1985 and one built in 1905, especially if the second hasn't been updated.