Also, Property Management. 10%/m ($273) is considered normal by many Property Managers.My other concern is: how many deferred big-ticket (or smaller) cap ex items are lurking around the corner?

Adding the two means the deal is worth, at best, $204K but most likely something closer to $158K, IF there isn't any deferred maintenance on the park or the homes.

And when you do them you not only have the ability to defer tax the normally through the 1031 process but you also are exempt from FIRPTA withholding.  

@Frank Manning I’ll have to defer to @Michael henry as our PM is reserved for our buyers.

Possibly some deferred maintenance things need done?

You also want to turn your "plan to be making" cash flow into "actually making" to be sure it's what you're expecting.I don't have personal experience with a 203(k) so I'll have to defer to others on that.

It would fully qualify for 1031 treatment which would defer all gain including depreciation recapture. 

If these deferred maintenance issues were present when you bought this property, it is likely it is widespread throughout the entire building and should have been apparent, which may an indication of budget/money issues.  

Is the building well managed or is there deferred maintenance? 

And it doesn't allow you to avoid taxes it just defers them until you sell the house and you have to have to pay depreciation recapture.