It would take a long time at $500/month to make up for the $200,000 in equity that you could re-invest into a lower cost of living area.

The basis of that money goes up 10% then an additional 5%, thereby lowering your tax liability, but as far as gains made in the OZ fund, that has to come from money subject to capital gains taxes.

Im not a seasoned expert, but not new either - my take is that you should lay out more info of what you are planning to do with the property and exactly how much lower it is than the surrounding area. 

Suggest a FHA lower down payment larger MF in a more active town with high paid jobs....

The upper unit (2nd and 3rd floor) is approx 1500sqft and the lower unit (ground floor) is approx. 1000sqft. 

MOST parks will not even consider letting an investor do rentals there as renters can lower the quality of a mobile home park very quickly. 

The down payment/overall price, insurance, taxes, etc seem much lower and the ROI looks to be the same, if not higher on the SFH.

That is negative $100 cash flow.To continue to hold, I could refinance to lower mortgage to about $1000, increase rent to $1600, cancel pool service and cash flow about $360.Or terminate lease for a struggling single mom and take the cash to turn into a larger investment. 

Sometimes rehabs are priced high as an estimate and then a contractor would bring it down to a lower number that wouldn’t scare you.

The best way to get cash flowing properties in these areas are finding a place that needs serious work, investing that rehab to increase the value, re appraising after the rehab and then pulling out as much cash as you can on the refinance (thus lowering the cash youve put in out of pocket and hopefully giving a good return on your cash)Hope this helps!