If you are concerned about protecting yourself, just buy an umbrella insurance policy for $1 million.I'm not sure why you're concerned about liability?

Banks and institutional servicers are not usually willing to get involved and assist customers and stick to the servicing agreement to the letter to avoid liabilities, and that makes good business sence, but we adminstered deals that were underwritten and failure was not an option!

Is it to avoid a liability issue?

Thanks to the Cost Segregation Study, the property investors accelerated the depreciation that the first year depreciation was approximately $111,100.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

There's huge liability in PM and guessing can be really expensive and stressful. 

The last reason to avoid park owned homes, is they only do 1 thing and that's depreciate, unlike stick built homes, the park owned homes are going to rapidly depreciate, so instead of an asset you have a liability. 

You aren’t going to create them for privacy (the county tax records will make it obvious the previous owner moved them in to an LLC or trust.)You aren’t going to create them for liability because 1) you’re going to screw up and co-mingle funds piercing the corporate veil. 2) Anything that gets the property in the LLC sued is going to be your fault, so you’ll be sued as well. 3) you’re just going to buy an umbrella policy because you are 10X more likely to get sued for something you do than something the property does.

However, it also seems like a big liability.

There's huge liability and usually not much profit in it.

Then there's general liability.