I actually lent the money to the purchasers to buy the Park. 

Hi @Alex Lee I would avoid 203K loan and work with conventional renovation loan based on knowing you'll be forced to use 203k certified contractors which will cost more money and offer inflated pricing because they must follow 203k guidelines. 

You could always get the extended warranty and still save money over the 3k model.

We will see.Good news....they haven't asked us for any more money....yet. 

Thanks for readingDavid $250,000 tax-free?

If you find something that works well as a short-term rental, but doesn't work well for you as a home, you'll have money but be dissatisfied when you live there.You don't even need it to produce a profit.

Ensure lender approval before bringing the mortgage current, and use escrow or a lien to protect your money.

You can make a lot of money, but be warned, a large % of Section 8 tenants are complete savages.

Then once you spend the money for that.. then the contractor will simply file a UNJUST Enrichment claim so your back to square one.. 

Then rent the bigger home out using a property manager, allowing her to possibly cash flow and maintain that asset and let it continue to grow in value.Encourage her to consult with a CPA or tax attorney to explore the best strategy tailored to her situation.