Better opportunities exist.2.

@Megan DeppeWhen I did all the long-distance landlording back in 2004, etc... all these gadgets didn't exist--haha!

The lack of existing inventory, coupled with a lagging pace of new construction, has really caused serious appreciation in some of the transitional neighborhoods, as @Marc Rice mentioned above.This has weakened cashflow a tad, as entry point in several areas has risen dramatically.

An additional requirement that may also apply to those mentioned above is if the reason used for the 2nd fha loan is due to an increase in family size/existing property doesn't meet family needs is having a 75% LTV on the existing property with the fha loan or paid down to that amount, based on the existing loan amount and an appraisal

Looking at what other models might exist that present new benefits.

It's really only a problem if an existing tenant makes it one.

Tell the existing tenant they can stay where they are for 10% below market rate or they have to move out so you can renovate and get a new renter that pays the full rate.I have a renter right now that was paying $475 in an apartment that needs to be gutted.

Also, check minimum lot size and street frontage as you may need to carve the mobile home park out of the existing lot versus pile onto the existing lot, so if you are trying to preserve the existing structure, you may lose some lots considering setback requirements and access.Your local government may require public water and sewer for a new mobile home park, so be sure to check the requirements and distance to the nearest connections.

It is certainly easier to scale in a proven area with your existing team.

In reality, the loan does not exist, and the homeowners become renters in their own homes, until they are eventually forced out by the inevitable foreclosure.