Deal or no deal? Mobile home purchase opportunity

[Michael Baradell]

What would you do? Buy or pass??

I have the opportunity to buy a parcel of land that can house 3 mobile homes. The city requires the mobile homes be brand new in order to have as rentals. City water and sewer.

Here are the numbers:

Lot $37k

$5k to prep land and remove an old small house.

Mobile homes $45k each (includes installation, pad, electrical, plumbing and skirting)

5 year warranty on each mobile home.

Taxes are $1500 year for everything

Insurance about $2400/year total

Rent will be $900/month per unit.

I will buy the lot and first mobile home with cash and then put a mortgage on it to finance the other two mobile homes. Will take 4 to 6 months before all are in place.

Thoughts overall? Any insight is appreciated.