Buying SFH in Manufactured Home Neighborhood

[Mark Benson]

Hey BiggerPockets, 

I'm interested in doing moderate rehabs on SFH's with the end goal of listing them as rentals. I've recently discovered an off-market deal that meets all of my criteria (estimated purchase price + rehab less than 70% ARV; should rent for ~ 1% what I'm "in" the property for; reasonable expectation of moderate appreciation, etc.). Here's the rub: the property is the sole SFH in what is otherwise a neighborhood of manufactured homes. Now, I don't have a problem with manufactured homes per se, the issue is I would (very obviously) own the best house in the neighborhood - the complete opposite to what I've read and accepted to be sound investing advice. I've read time and again the street a property resides on is one of if not *the* most important factors when valuing a home.

Why then, even entertain the deal? In short: very competitive market, reasonably good neighborhood (safe, good schools, etc.), and running the 'numbers' suggests nearly 100% return on capital invested post-rehab (though ultimately I still plan to rent).

My question is: All else being equal, how much would you discount the price per square foot given the property's neighborhood? 

(Yes yes, I know, price per square foot is just one measure of a property's value; consider all else as equal in this example - as if you had plucked a SFH with average upgrades/amenities from a neighborhood of SFH's and dropped it one neighborhood over.)

Thoughts/considerations/advice/anecdotes on this scenario much appreciated; it's somewhat unique, I feel.

Edit: Something else occurs to me - how much would you increase expected vacancy; time on market when I ultimately do decide to sell?