True, but this is really a question of budget and business plan (new v. used).
For instance, in my communities the options are:
Purchase used (1997) 4BR for $13.5k, which means all-in costs are $19k delivered and ready-to-rent. Pay cash.
Used 4BR home monthly economics are:
$750 rent (includes lot rent)
=$585 gross profit
$585/$19,500 = 3.0% profit/month
Purchase new Legacy (2014) 4BR for $38k all-in delivered and ready-to-rent. Finance w. Legacy ($12,666 [30%] DP, 10% interest, 10 yr. amortization)
New Legacy monthly home economics are:
$900 rent (includes lot rent)
-$335 house payment
=$370 gross profit
$370/$12,666 = 2.9% profit/month
So your return is very similar either way. The decision comes down to how comfortable you are with debt, and how nice your park is. Ours are more basic parks, so we don’t want to over-improve them, and bringing in used homes for under $20k is what is right for our community. Plus, we don’t like debt.
Your mileage may vary,