Your title company will feel comfortable insuring the transaction, safe in the knowledge that the previous title insurance policy can be used to pay off any unreleased prior judgments. 

We're doing this for all of the typical reasons one makes this move, but most of all, to save money and improve our financial position to the point where we're comfortable taking risks with investing in real estate.

Once you develop your core four (agent, pm, contractor, lender) stick only to that specific market until you are comfortable with consistently putting in offers.

I bought and ready many investing books and after gaining significant knowledge, I felt comfortable putting money in the market.

To protect yourself from big losses you should value the park based on the portion of rent that can be allocated to lot rent and if you have to value the homes then value those based on shell value or what you can comfortably sell them for. 

If I did this cash out refi, I would replenish/add to the emergency fund just for a little extra comfort but would like to use the rest to buy more real estate. $40k wouldn't buy much around me so likely I would have to look out of state which I have never done before.  

I feel more comfortable having the insurance. 

The cash-out refi process is more to my level of understanding so I'm comfortable with it but just worried it's a bad move considering what my scenario is?

If that pencils out as a profitable project, we will shoot for the moon and ask for relief on certain limitations in order to maximize the property.Hope that makes sensePaul

So you have to ask yourself, are those issues deal breakers or would you be comfortable continuing forward, knowing you will have to tackle them after closing?