I am over simplifying here, but you pay $1mm for a property, hold it for 10 years and sell for $2mm, you pay $1mm for a property, hold for 30 years and sell for $2.5mm. 

After awhile it adds up to a crazy patchwork.I would definitely pull all that out and simplify it, unless you feel you need a heated toilet.

This would convert the sale into an "installment sale" in the eyes of the IRS which would spread the gain over the period of the sale.Theoretical example:Purchase price: $10kRenovations: $0 (to simplify)Sale price: $20kNote: 8% over 10 years with 10k down. $10k sale price, $121/mo for 120 months.Period between purchase/sale: 6 monthsSince the note is over 10 years would the payments beyond year 1 be taxed at capital gains rates or my regular income if this were held in an LLC?

I am sure others may have other opinions on how to do the math I was just simplifying it.  

Maybe "due diligence" is a bit confusing in this context, as of course the burden is always on the investor at the end of the day to do their due diligence, by definition.But certainly it's the job of all turnkey providers to simplify the process of investing in real estate for investors - also by definition.

Construction is around $120 /sq foot 4) Rent out, collect rents, and refinance with a traditional mortgage.My reasoning is that 1) Renters don't care whether a house is manufactured or not, so would pay the same rent had the property been site built. 2) Manufactured houses are much cheaper to build than site built, so cash flow would be better 3) I'm not too experienced in construction, so manufactured could simplify the process. 

Construction is around $120 /sq foot 4) Rent out, collect rents, and refinance with a traditional mortgage.My reasoning is that 1) Renters don't care whether a house is manufactured or not, so would pay the same rent had the property been site built. 2) Manufactured houses are much cheaper to build than site built, so cash flow would be better 3) I'm not too experienced in construction, so manufactured could simplify the process.

Construction is around $120 /sq foot 4) Rent out, collect rents, and refinance with a traditional mortgage.My reasoning is that 1) Renters don't care whether a house is manufactured or not, so would pay the same rent had the property been site built. 2) Manufactured houses are much cheaper to build than site built, so cash flow would be better 3) I'm not too experienced in construction, so manufactured could simplify the process.

I am really just trying to simplify this as much as I can so that when we have 5,10,15 properties, it is easier to keep track of who owns what. 

Keep in mind I simplified the math too.