You are 20 years old and don't even know what it's like to work the same job for five years.

And how did you find the deal?  

We want to rent out the basement as a one-bedroom apartment to defray the mortgage cost.

This would be our first flip together, splitting cost and profit 50/50 with a hard money loan for what we cannot make up on our own.

Personally, I would put most of it in passive real estate syndications - but I am a full time passive investor so that makes the most sense for me.The first decision you would need to make from my perspective is whether you want to invest passively or actively (your profile says rental property investor, so I would assume you are currently an active investor). 

The focus of government policy (regardless of how local) should be on addressing fundamental friction.

Quote from @Elliot Rosen: Use a licensed and bonded foundation company and keep the invoices, and disclose it to the buyer.

I just asked a title rep in the area and she says they wont handle a close even as a transaction coordinator unless they write a policy for it which they cant do on a manufactured home on a rented lot.

Almost all of the businesses that pop up are either wholesalers or investors.

Are you paying $2,400 and getting back $1,600 so only paying $800/month or the $2,400 is your net payment after the MIL rent?