There are several factors to consider when deciding whether to replace the old mobile home with a newer one or renovate the existing one.If you choose to replace the old home with a newer one, some "gotchas" to be aware of include the cost of purchasing a new used mobile home, transportation and installation costs, permits required for the new home, as well as potential landscaping and foundation work needed to accommodate the new home.

Or where the funds to purchase come from (except that they need to use all of their 1031 proceeds in the purchase).The only time there will be a potential issue is if the daughter goes on the deed. 

Be aware of hidden damages in foreclosed properties, factor in potential vacancy rates, and consider property management for a larger portfolio to streamline operations.

You would get, potentially, the left overs.3.

**A tip when interviewing a potential buyer's agent, ask the agent about the conditions for commission compensation when the seller is not offering full commission percentage to the buyer's agent.

I am wondering if I should let others know about this potentially risky "investment"!?

In terms of cost, you just give up a percentage of the potential collected rents so there normally isn't' an up front cost to send someone to collections. 

Still, I'm concerned about potential tax complications given the property's location in Maui, my residence in California, and my in-laws living in Washington.Am I overlooking anything crucial here?

Since I was a medical student, I've always been passionate about making smart investments for my future, and real estate has piqued my interest for its potential to generate passive income and build long-term wealth.

This would be a non arms length prohibited transaction and would potentially result in the entire IRA being distributed is my understanding...the only way this could be possible is if the OP is or becomes retirement age in the next two years.