I'd suggest you be prepared to take out any investor on short notice, no harm no foul.

You don't want to have a lender see that and foul up the deal.As to the tax question, I would ask your accountant / CPA.

You can always get "Two Dudes with a Hammer" to do it cheaper, but fire damage, smoke damage, water (potentially mold) and odor mitigation is things you really want a professional working on.

Nobody will insure this risk either.Depending on proximity to the homes there could be an odor too, so go smell the thing and that might steer you.The pros that buy lots of parks will not buy a park with lagoon unless there is city sewer at the street as a backup, and they factor that cost into their offer price due to the risk.Every once in a while you see a 75 pad park for sale for 200K on the market for 2 years, and it's because it needs a new 400K lagoon and 73 additional occupants.

Either one will have a very distinct odor that will be very conspicuous.

If they cry foul then tell them to sue you.

I'm done here.I don’t blame you...California has somewhat of a foul odor when it comes to business and property investors and the free-rent activists are being heard.

Another issue, auto policies should have a business exposure, if you are conducting business and have an accident you may not be covered.Errors and Omissions coverage is a separate policy and usually covers errors, omission, implied warranties and negligence on a deal by deal basis, it's cheap if you can get it.No insurance covers intentional illegal acts, so if you choose to do a shady deal that violates law, it could be on you.An LLC offers some liability protection for those who can operate with an astute business knowledge, but there are so many ways to foul it up I'd say be insured!

All new floors, new kitchen cabinets, new appliances, and odor remediation.

In reality, there was really no harm no foul.