I'm pretty good at tracking down tax info, but I really need to find a good insurance broker to get a handle on what kind of insurance I need and what it'll cost.

Here in Nebraska they pay 14%, the state handles all the paper work so you don't have to deal directly with the property owners. 

What options do we have and how can we handle this situation without breaking any fair housing laws? 

I think the best way to handle this would be to tell them that you found out from the police that this situation is going on and that they have the power to seize your property, if this were to happen again.

I like to handle my transactions myself so these kind of things don't happen.

You can use the title company that gave you title insurance this time to handle the refinance.

The seminar environment was a little "peppy" for me personally but I'm a pretty low key guy.On the tour, the speaker gave out good advice, handled common objections you'd expect from new investors and was respectful of my time and local knowledge.I left after the tour so I can't say what went on afterwards but I got some value out of my time there.1.

If you do end up buying, then renting with option to buy, you should make sure you spell out how the repairs will be handled. 

Also FWIW 99.9999% of closing attorneys don't handle the MH home title, they just handle the transfer of real property.  

Handle his deposit based on the condition of the property.