Granted this often covers roof repairs, exterior insurance, lawn care, sewer and some other expenses.

The only bills the owner has is taxes/insurance, as well as property management/maintenance.My question is how to evaluate this deal; Do I base the value solely on the lots, or do I include the entire $500 which includes lot & trailer rent? 

You just received a copy of the letter because you are the Owner.The PM should be filing a claim with his insurance carrier.

Also, making sure you home owner's insurance is setup to cover the rental onsite and having adequate coverage will take you a long way.

In this tight inventory market, it's far easier for you to find a 70% ARV home than it is a 60% ARV home to have room for an assignment fee.Obviously, we do it every day in both categories, but I'm also a Licensed GC with dozens of crews, a full office team including a rehab manager, etc... so it makes flipping very easy for us.Flipping is much riskier from a time, money, rehab, construction, crew, theft, vandalism during ownership, lawsuit, insurance, holding cost perspective....but we still do plenty of them.We used to be 80-90% retail flips. 

What type of business insurance do you carry?

Are you suggesting not to create an LLC at all and simply get umbrella insurance?

purchase $172,500Closing cost $2300Repair cost = zero ( i will pwash) down payment $34,500.00P&i, insur, water/sewer, vac, capex, taxes  $1156mortgage= $138Rent $1500 

That means your insurance is going to pay for the damages and you’ll have a insurance claim on your records.

she was a little bit hostile when I asked her to provide renters insurance for her dogs and said she would not do it, although she apparently makes $400k a year - realllllyyyy???