If this is a traditional sale, which I am not sure if you are saying it is, Ditech will have to be paid off in full for this to close and title to be transferred properly.

I'm confident I can find graduate student / classmates to rent out my unit if it's priced with the market and close enough to a bus line.  

The owner claims the only thing that needs to be done is a transfer of title for about $150 (in Texas) with a cash purchase.

I guess the costs here might be recording the deed, NJ transfer tax.  

I would HIGHLY recommend forming an LLC right now and transfer your Deed of the property you have into the LLC.  

Factor in agent fees, transfer fees/tax, title fees, and escrow fees.

It seems to me this non-conforming unit might be used to my advantage (ie. she may be hesitant to go to the MLS because the non-conforming unit will potentially cause problems for non-cash buyers).I'm thinking of transferring my $500K 1031 gain to her as a down payment (and to pay off this note).

It could impact investors, lenders, attorneys and CPAs if there is a massive transfer of properties into LLCs and it will create a ton of debate on the due on sale clause (inside and outside of banks) and analysis on the pros and cons of LLC tax benefits versus residential financing terms.  

Are any mobile homes sold as Contract For Deeds where the deed is not transferred until the obligations are met?

All three tenants have a slightly different situation when it comes to their previous agreements.Tenant 1: is currently 6 months into their 1 year lease, and is paying above market, and last month's rent will be transferred upon closing.