I have a feeling that liquidation is just around the corner. 

Adding the current mortgage and utilities would be roughly $1,350 resulting in a profit of $650/mo.That a pretty good amount of profit/cash flow to apply to your mortgage on a larger house.

Cities like these offer untapped potential without the intense competition found in larger metros.3.

I have been thinking small office or retail (which I have experience in); larger multi family (10-20 unit), RV Storage, and have even thought about beach front hotel, or at least ocean view hotel.

As it stands now, the sweet spot in that area in the market for rent seems to be a little larger 2/2 house with large living area for guests.

This would allow you to indefinitely defer the tax on the property and use it to purchase larger property/properties in a nicer appreciating area.

Even if you don’t have enough equity to buy in all cash, you may still have enough to make a larger down payment, which has its own benefits too.Bottom LineHomeowners have an incredible amount of equity today – and that’s why the share of all-cash buyers is on the rise.

From what I can tell, it seems like most of the very small towns in this area; tons of trailers, single family homes, no visible high rises or larger multifamily that I saw. 

If I had a large amount of liquid capital, do you think I should use it to purchase fixed assets or for some project development, which would be more suitable?

This hands-on strategy allows you to add immediate value and build capital quickly to reinvest in larger deals.