We made very little, maybe $2000 - $2500 for each policy (on top of the value we will receive back). 

That is one of the highest crime areas in the city, as shown by a recent news report by Fox 59 (link below):http://fox59.com/2014/10/09/public-safety-official... 

I originally considered the option of buying it for a rental, but the park has an owner occupant only policy and lot Rent of $600/mn. 

For future readers of this thread I wanted to let everyone know that iFunding has adopted new policies to have the experienced diligence folks vet deals.  

Its much easier for someone to call REI a bad idea then it is for them to admit they couldn't possibly learn the business.These same people have become so used to the 40 hr grind that they don't want to leave the "safety net" they think they have in a weekly paycheck.If REI is what you want to do then listen closely to the skeptics and ask them for specific reasons to back up their opinions. 

Just make sure of your returns and safety net.Good luck,Dave

I went through AmFam, although the policy was actually backed by another insurance company (don't remember off hand who it was).

I specified that I did not want HUD to give me a title policy so no disclosure was required to the seller.

Who is PAYING for the title policy?

Why not purchase a home warranty policy to cover such incidentials?