You'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.Creating an LLC in California could cost you a minimum tax of $800 every year.

However if the property is almost paid off I’d look at the cost of the repairs (they’ll only get more expensive if you let conditions deteriorate further) and weigh the costs vs the income you are making.

These are the tough conversations with sellers you have to have when they let their parks and trailers deteriorate to the point of utter distress. 

I have spent hundreds of hours on the phone with Safeguard, attorneys, other investors and real estate professionals dealing with non performing notes and deteriorating real estate. 

@John DeanJohn, I’ve used both Kilz original oil based (on any surfaces that are real bad/ deteriorating) and then their newer product that is water based called Restorer... most recently (April) I bought a place that had two beautiful dogs that literally never saw the outdoors and after stripping the carpet rolled Restorer on the entire subfloor before throwing down the usual LVP.

Lastly don't forget to check around where the framing meets the foundation for insect deterioration.

When you retile the surround tile over the new window framing so it doesn't deteriorate like that.

These baffles will deteriorate and can be replaced with a pvc outlet baffle.

BUT... the buyer turns out to be a slumlord who is allowing the property to deteriorate so bad that the house will soon be unlivable? 

In the case of the HVAC, I could replace the condenser this year (<$2500) and the air handler (also <$2500) next year.In the case of the roof I could replace the half of the roof that looks more deteriorated this year, and replace the rest next year (also <$2500 per year).