In order to just sell yours you would need to go through an equitable division and probably craft corrective quit claim deeds showing your 51% interest as a specific amount of units.   

If something were to go wrong, it would be on the contractor to file the insurance claim.

If I sell (and move off property) or demolish the modular home and sell the land to state, can I claim the sale proceeds as principal residence since I lived on the land?

Can I charge $200 per month and take depriciation? is there a minium that I can charge and still take depreciation? Ty

If I demolish or sell off the manufactured home and then sell the land to state, can I claim the sale proceeds as principal residence since I lived on the land previously?

This is the cleanest way, and neither one can come back later and claim damage that was or was not there when they moved in/out. 

Can you defend your claim of "combative and threatening"? 

So many of them claim they can't piece the veil of the AMC, and it's frustrating.  

Because she also works in Florida and travels there for work, she was thinking she could claim this property as a primary residence and try and qualify for an FHA 203K loan to buy and rehab the property and take one of the units during the 1 year FHA timeline.  

You claim you can’t qualify for a conventional loan now.