Lawsuits are treated like lottery tickets.

I have heard that getting funding for MH's is difficult due to them usually being treated as a depreciating vehicle and not as a permanent structure. 

I note that you asked specifically about “cash-flows”, which has multiple components each treated differently for tax purposes.In general, you can start with NOI, next you have debt service and cap ex, which can get you to cash-flows.The interest portion of your debt service is tax deductible (possible subject to limitations) and the principal portion is not because you get basis in the asset for the loan principal, which generates a depreciation deduction.Similarly, cap ex is generally not deductible currently but the expenditure is capitalized and depreciated, similar to the initial basis in the asset.In summary, you have cash and non-cash tax items that cause your taxable income to differ from your cash-flows and taxable income * tax rate determines your tax liability.

My attorney is at a loss of words with the way I have been treated during this deal, apparently I got the short end of the stick because another asset manager failed to sell this property, and two other deals fell through, so I got the brunt of the anger.

The moral of the story is that I would do it, but I wouldn't treat them any differently because of the lump sum rent payment.

@Stephen Haynes would you treat an eviction and foreclosure the exact same?

It would be hard to prove that you are treating the asset and the LLC as a separate entity, thus benefit from its separate identity.  

I’ve yet to hear of or deal with a PM who treats your investment like it is their investment.

However, if you cannot meet that standard, this depreciation recapture will be treated as taxable income for in the year of the recapture, meaning it will be taxed at your top marginal rate.

ROI should be higher WITH the HELOC...you have less "I"...the HELOC should be treated like the 1st mortgage debt and not included in your invested amount."