I used to manage a few MH communities in Michigan and oversaw transferring of titles when our residents sold their homes. 

The property has been sitting for months.

If it is a headache, see if you can manage the building for the seller for 6-12 months before you buy. 

My friend lives in a different state and has been trying to hold onto the property.

I have had one investment property in Birmingham, Alabama, for two years and wholesale cash-flowing turnkey properties in Central Alabama.

I am sure you're aware of the FEMA 50% Rule for renovations of properties in certain Flood Zone's, so I won't insult your intelligence by going into it.

Then, you need to keep managing your payments to actually have savings to make it worth while.  

If you were to seek a LOC against #3, you would not get much as an investment property its very difficult to get a LOC and they typically will not go above 75-80% LTV which is where you are at.2.

I would be financing the property via a bank. 

I'm happy to help connect you with professional and helpful agents or property managers from Pensacola to Panama City!