Hi Ken,
The only REO source of mobiles that I know of is the GreenTree financial Repo lot in Tulsa. I have been there on several occasions but these are newer homes and much higher in price. Some of the houses are on the lot and some are still on the previous owners lot. I find the best way to buy mobiles in the price range you describe is to advertise in the local paper - We buy mobile homes, cash. What you will probably find are plenty of prospects, but they will all have to be unhooked, unskirted, wheels installed and moved. The process also involves having to pay the taxes at the local courthouse and visit the tag agency to get the required updated plate sticker and 936 form before the home can be moved. I don't mean to be pessimistic but the only way I can buy a decent home and get it moved and set up to rent for $7000 is by doing all the leg work and a good deal of the physical hookup and skirting personally. I don't believe that you can accomplish what you need to for the money you describe from the West Coast. I guess its possible if you have a relative who is willing to be very heavily involved. If that isn't the case then I would say that you should budget more money. You might try contacting some of the dealers in the area and see if they would let you buy their trade ins. Good Luck and Good Hunting out there.