This part is true.

Funny part is if I do all this upgrading - the house will be nicer than it ever has......only when me and my family are leaving it lolol.Some good points on the ROI and the 875k number.  

Permitting costs can be reduced for facilities with multiple buildings ongoing as they can negotiate discounts and use a third party to permit that is certified by the state.Now, you do need to transport the home, but here distance is a factor, sure if you are going to ship 100's of miles this can add up but in general there is a service area for delivery at nominal cost.Those designs over 1 story will cost more as you need to rent a crane but that is another area you can manage cost.In the end I am pushing back against a blanket statement that "modulars cost as much and are built to poor quality" because frankly that is wrong.

Keep in mind in this case, you are not dealing with insurance carrires and any monetary judgment, if applicable will be difficult to collect on (particularly in this space as I am sure you are dealing with unsophisticated and poorly capitalized parties).

Account for increased A/C costs and manage the rental agreement to avoid parties. 

Try as hard as possible to leave political parties out of this , but general politics for a region should be ok . 

Also, you will want to make sure that the telephone conversation you recorded is within a state that allows for one-party consent (meaning you) as that is not the case in all states including mine.  

Asking these questions directly to the specific parties involved would be a more efficient use of time.

Its success hinges on the honesty and reliability of each party involved.

I'd specifically ask why it is being treated as a third party sale since the LLCs members are you and your wife.