You are telling us all its a great deal, it needs MINOR reno and appliances are the most expensive items, hmm,, that does not sound like a great deal. 

the house still needs foundation repairs as well as new windows, new ac and a handful of other items.

They respond quickly to emails/calls and follow up on open items.

Just some food for thought.https://www.mobilehomeuniversity.com/mhp-mastery/the-new-par...

Property management (pm) should be a line-item in the rental investing scenario, not a ways to cashflow or break-even .

We were so over budget and some of the budget went to Items that add very little value (such as new plumbing and electrical) that I suspect we barely added more value than the cost.  

-Housing, utilities and food cost are around 14%, 8% and 6% compared to the national average making it a great place to live for families, college students and people looking to retire.

Things like the asking for the same items multiple times, costs/fees that weren't originally discussed or catching the land contract a bit late in the process give me a bad experience.

As you surmise, there is no way to avoid the deemed gain on transferring it out of the Federal corporate structure, into a pass through structure.There are potential ways to to transfer out the future appreciation while leaving the bulk of the 'old' appreciation in the S-Corp, but no way to get that 'old' appreciation out of the corp without triggering a gain.Last item to reiterate - this gain is at the S-level, so it’ll give rise to S/H basis (while simultaneously reducing basis via the distribution).

Items with a strong foundation for growth that you are happy to own.