Do not force a bad deal because you have money burning a hole in your pocket.

Not sure what I should do considering I'm 158K + interest in the hole. 

But capital expenditures are around 30k this past year so actual profit is only about 10k.According to the owner there's 1 vacant space, 1 tenant owned home, and 13 park owned homes.I drove through and noticed that most of the homes had holes in them and were being held together with tape.

Would love it if someone could help me poke holes in this or tell me what I'm missing, or how you would approach getting this deal done (or, why I should walk away). 

These types of programs are rabbit holes and will end up costing you money in the long run for a variety of reasons.How is the tenant pool?

A lot can be done by cleaning the place up, repairing the holes in the walls, ripping out stinky, stained carpet, etc.

Holes in the walls and ceilings.  

I agree the landlords have dug their own hole here.

In my opinion, I'd ask myself how long it would take to make up the monetary difference between the cash out refi and selling it between all of your sources of income, job, rent etc.

The power of the BP community to shed light on the holes in your analysis is quite frankly underrated.