Several reasons but the most economical are typically: 1) Cost to develop vs higher and best use of the land vs buying an existing park 2) Local resistance b/c MHP residents cost more in taxes than the property returns to the city in terms of property taxes (Charles Decker, Duke PhD MHP Researcher)Average market lot rents should be closer to $500 / mo based on the rate of inflation since the 50s.

I was told I would not be able to get title insurance for a situation like this which seemed odd.

@Jim Rusco If the HOA fee includes management, yes, find out exactly what that means; I would find it very odd if they didn't require a percentage of your income, so definitely look into that.  

That's extremely odd that there wouldn't be at least one jack in the place.

Partaking in odd jobs that help you expand your network is always an option.

Odds are they can get a some assistance on their loan with zero to minimal long term penalties. 

We are looking at staying in median price point homes and we will stay away from non conforming or odd deals.

Once behind the odds of your tenants catching up or paying a balloon payment are next to nothing.

I'm also assuming that inflation is 3% but rent increase is only 2% to be conservative because around here I haven't necessarily seen rents go up too much year after year.

After all what is the point of 50 BPS more at purchase if in 1 to 2 years you have a vacant building with no return coming in at inflated rents?