You don't want legal issues when it comes to evictions; It's backwards for the Seller to put any value on these homes if they don't actually own them, so I do hope they're a bonus as part of the land purchase and not the core reason for your purchase...but it does happen and you need to account for that risk based on the answers to the first two above.There are some companies that specialize in getting titles for these situations, you might consider seeing if they can do their magic prior to close so this is not a risk item for you...but in many states it can take 3+ months so may not be doable.Keep us posted.

With the state density bonus I am planning on 14 units.  2 work/live units and parking on first floor, and 2 floors of studios & 1 br's above. 

Of course, if you're in the Orlando/Florida area that's a bonus, but anywhere is fine with me especially if it's a big vacation area. 

And I strongly believe that coming across as a professional is a bonus.

If not you may have to depreciate it. if it was You can ask your tax guy about bonus depreciation and/or the safe harbor for expensing “larger repairs” under I BELIEVE $2500 per item. 

The study identifies with forensic engineering detail the immediate Bonus Depreciation 5, 7 and 15-year personal property class lives qualifying portions of a building that are normally buried in 27.5 year residential or 39 year commercial categories.The Cost Segregation Study was performed on the Asset Depreciation Range (ADR) and is based on a 40% tax bracket for State and Federal Taxes.

I also had to redo part of the large bonus room because the poly would not lay flat and tended to get more and more wrinkled the further I got in the room.

@Malayna Johnson   In my experience not that many people redeem, so I think most people are buying to get the property, not counting on the 25% or 50% penalty bonus if they do redeem. 

Bonus question: what are the pitfalls here?

I also get bonuses from my company every year.