I want to start small and simple with a low priced place and use it as a learning tool for about a year. What has really struck my interest is mobile homes. They sell quite cheaply around here, and on average rent for 450-575 per month. I could easly pick up a fairly new one for about 15-20k that is already set up and ready to move in.

Does anyone have any tips, opinions? or other suggestions?

Honestly, as a 23 year old, your best bet would probably be to look for a good duplex, triplex, or fourplex. When I started looking back in 2004-2005, I was making under $35,000 a year. In Western New York, property and school taxes are a huge portion of the cost of ownership for property owners. In my mind, I wanted an affordable way to move out of my parents' place that wouldn't bankrupt me. A $100,000 house in a decent neighborhood around me could run you $500 to $600 a month in mortgage, another $400 to $500 a month in taxes, and then another $500 to $1,000 a year in insurance. To move out on my own, in a single family house, it would cost me roughly $900-$1,200 a month depending on where I lived and I would be unable to claim any depreciation on my personal residence.

Instead, I started looking for duplexes or larger. My current house was zoned as 3 units where purchased and is now legally 4. I paid udner $90,000 for over 4,500 square feet. There are 2 three bedroom units, 1 two bedroom unit, and a studio. I obtain rents of roughly $1,600 a month and pay out roughly $1,300 for two mortgages (primarly and home equity) and taxes (roughly $5,000 a year) and insurance ($1,800 yearly landlord insurance).

I have not made any profit on paper since owning the property, but there are significant tax advantages. I have claimed losses from $4,000 to $8,000 a year on this property over the last few years, but I also live for free (basically). Being able to claim 75% of the depreciation and being able to claim 75% of all landscaping, tools, and significant improvements, plus 100% of all unit repairs and maintenance, although I am losing money, it is decreasing my taxable income. In 20 years from now, I hope that it will be worth $50,000 more than what I paid for it, plus, I expect it to provide a significant cash flow ($1,000 a month). At that point in time, I hope to be leveraging that $1,000 a month into other, larger properties.

I have considered mobile homes for investments, but not to rent out. I have considered purchasing a mobile home for myself for around $15,000, paying it off over five years (8% interest, 60 months, roughly $300 a month) and renting out my apartment for $600+ a month. That way, after 5 years or so, I will have a $12-$15,000 mobile home, that cost me almost nothing. Unfortunatly, most of the other posters are correct. By the time you add in lot fees for land that you don't own, that cheap $15-$20,000 mobile home ends up costing you signficantly more each month.

If you end up renting out a mobile home for $500 a month, and it costs you $20,000 over 10 years (8% interest, 120 months), roughly $250 a month, take a minute to add in the lot cost and maintenance. You may not ultimately be recovering the cost. If you did recover the entire cost, a renter would just buy instead of rent.

Can you afford your own mortgage or rent while taking a monthly loss (only a loss because it's a monthly cash flow issue, since you will be gaining some equity)? Additionally, as noted, mobile homes depreciate very fast and basically never appreciate in value.