Palm Coast, while not as flashy as Miami, is indeed growing rapidly, with increasing interest from higher-income professionals and retirees.

This would greatly increase the size of your next downpayment.

I just can't accept such a constant ever increasing loss, even if I can afford it. 

It's not that different from a normal rent increase.

It's tempting early on to leverage as much as you can so you can do more deals and keep liquidity, but increased cashflow especially with PMI will make you sleep a lot better at night.

Anywhere that one can buy properties for under $100k is very unlikely to have the rent increases that you will need over time to create positive cashflow, or the price appreciation that you will need to make this a profitable endeavor.

Depreciation recapture applies at ordinary income rates capped at 25%, increasing your tax liability.

The increased risk is generated by the fact that the owners are relying on the validity of the tenancy in common Agreement for their usage rights, and it is possible to imagine legal circumstances under which this validity might be undermined.- If the subdivider or someone with relationship to subdivider sells, a public report must be done.

My terms are identical to yours as far as the 1-year lease with 3 options to renew (for them), 3% yearly rent increase, etc.

One of the things to watch out with mobile home parks is the increase in lot rent.