Buying mobile home park

We’re looking to make our first real estate investment. I’m an ex-pat Aussie living in California where real estate prices have gone crazy. It is impossible to find positive cash flow in the market here today.

We started to look in other states and I found one potential deal that would return about $20,000 a year in positive cash flow at about 22% cash on cash return. The numbers are good – but it is a mobile home park with 12 mobile homes on the premises. The park is old and needing some work and the rents are all month to month with quite a high turnover. It would require a certain amount of active involvement, especially in the early stages.

So that brings me to my questions:
1. Does anyone have any experience with this kind of property? How did you deal with the turnover and management issues? As rents are month to month, do tenants trash the homes more than normal, thereby requiring large repairs?

2. How would YOU feel leaving the management of this sort of property with a management company? Do you think it requires a manager living on the premises?

Thanks for any suggetions.

Sam