I had gotten the idea because there was a mobile home dealer in the area who would finance homes and allow customers to pay that way.

Drug dealers need a place to live also! 

I'm a General & Manufactured Home Contractor, Manufactured Home Dealer, RE Broker, Developer, Investor &  Property Manager in North San Diego (Leucadia).

More likely it would be used by drug dealers, terrorists, etc.  

If you flip the property, meaning you didn't place the property in to service as a rental, you sold instead, you will be classified as a dealer by the IRS, your properties will be considered your inventory and you will be taxed on your profits at ordinary income rates (whatever tax bracket you are in that year) + 15.2% self employment tax.

If you find a 25K note and get a seller to agree to take 10K and then arrange a purchase from a dealer or anyone else say at 15K and they use that money at the settlement, you are not buying with your money, you are brokering.

Quote from @Matthew Irish-Jones: @Edwin De leon I own 50+ units in NY and manage over 500.Evictions are a pain and the state has gone overboard with some of the tenant laws.With that being said our average cash on cash returns are 8% in B class areas and our delinquency hovers around 7-10% of our total portfolio.The 10% delinquency is geographic by micro markets.

I just purchased my first MH (bank owned) and am in the process of selling it with owner financing...I assume that when the bank sends me the title, I will register it and pay the transfer fee (I don't yet have a dealer's license).My question is, when I sell the home, what do I do with the physical title?

Quote from @Matthew Irish-Jones: @James Hamling now that is an interesting question.What do you tip?

They will most likely tell you LLCs are great for passive investing and S-Corp for dealer status activity and wholesaling is dealer status activity.Also you may be using the word wholesaling wrong and meant to say assigning.