@Carrie Zhang Interesting you found additional experiences on that reddit thread - thx for sharing!

The repairs and maintenance on 25 year old mobile homes is sky high, the uncollected rent and evictions on park owned mobile homes is astronomical, and I bet the owner isn’t carrying any insurance.  

As a side note,  it doesn't seem like the margins are very good if you are spending $450,000 on the hard construction, still have carrying costs (debt service/loan origination, taxes, builders risk insurance and general liability) and have to include the subdivided parcel which presumably decreases the value of your current home.

They will usually carry enough materials on their truck or van to be able to do most repair jobs and should be included in their cost or fees.

Might require prospective tenant to carry renters insurance.

2) If secondary, do you have a contingency plan to fund this asset's negative carry?

Debt. org estimates that the average household with a credit card carries $8,396 in debt.

The offer was for a modest amount down, with the seller carrying back a note.

Thirdly, if the losses can only get carried forward to selling time when I realize capital gains, then isn't there the rule (i forget the name) which allows you to sell, and buy another house within few months, and hence you don't have to pay any capital gains on the first house?

No W-2, but you're right that carrying a W-2 makes this more difficult, for sure.