Title insurance is there to cover any discrepancies that the title company was not able to uncover and assures you that you have a clear title.

Only do this if you're prepared to fix whatever else the inspection uncovers, but inspectors are usually helpful and friendly when you ask for the inspection and not from a tenant complaint.

This includes a reliable real estate agent who uncovers good deals and connects you with experienced property managers, contractors, and lenders, ensuring a smooth experience.

You don't know what you don't know and there is risk involve but I wouldn't let that stop you.Who knows, you may uncover this local bike rental business is more profitable than your local STR and deserves more of your time.  

I get your restaurant analogy, but it's wildly flawed, here is how: What your arguing is one would go out and look at a Subway, look at a McDonalds, look at a sandwich truck, look at a "Mom-Pop" Taco joint, look at a fine dining and a spot's bar and a casual fine dining AND THEN decide which to jump in based on some metric of the business.

I did one of these deals years ago and mobile homes were not considered 'real' property unless on a real foundation- at least that it my memory- and it could be flawed. 

And knowing that it will probably be more weathly people that have (a) the land in the back yard (b) financial means to put up an ADU you are potentially restricted on who would WANT one in there back yard.This is the whole flaw with this (SoCal) idea and not your business plan.

It will uncover code violations and fines that have not been recorded as liens yet.  

But the flaw in your story is you need that contract signed, without that, it's all meaningless.

Also using a percentage of revenue is inherently flawed, I assure you that whoever you have doing your maintenance or improvements will not base their pricing on what you receive in rent.That said I understand that some we need to have some convenient way of budgeting for these expenses.