Find out how much the seller needs, if any, to walk away. 

And if they can't make it work profitably, they won't be able to sell as that means nobody can either, so they will just walk away. 

It's best to walk through your options with a mortgage professional that can help you make the best financial decision for your near and long term goals.Anyone take out a healthy HELOC lately? 

Maybe this is the walk-through inspection.

How important is it to have something that is beachfront or very close versus a property that is roughly within walking distance (under a mile to the beach)? 

You really need an experienced (read old fart) GC to walk the project with you to be accurate and even then things can be missed.

If you walked up to Michael Jordan and said, "I want to learn sports" he would walk away.

I have since been keeping in contact without pushing her and making her feel pressured.I spoke with the seller again today to try to get the ball rolling and she mentioned her daughter is a realtorand she had her ask a friend that deals in larger MHP whom said the property is worth over $300,000 but stated that because of the size and lack of comps its hard to give an exact amount.I asked her if $300,000 was what she was looking to get for the property and she said she was thinking more like $250,000 as she owns it out right and would rather see someone else benefit from it like her and her husband did.A similar ranch home not even a 15 min walk is under contract for $280,000 currently.

are you walking these properties yourself? 

Did you walk the house to see why the records are different (ie did they finish a basement and add a bathroom, den and bedroom)?