I don't think there is a way to make money on small-scale utilizing PMs.

Most of the issue is lack of experience but I suspect now it just isn’t the right time to be a small scale Developer, at least for a newbie.Labor shortages, hiking land values, expensive construction, hostile regulations. 

I did the math on this in my market and that would be quite difficult with construction prices today ( in my market at least) However I do think you could make a really good profit if you were to scale that by purchasing a larger piece of land and developing a neighborhood if that is an option for you. 

You may want to check with your local manufactured housing association.

I am not sure i would sleep well with only $1m in umbrella.... saw a post where a child was scaled by too hot water in cali and got $3m judgement, and another big judgement because of broken door lock allowed an x boyfriend to enter and assault tenant.I think prepare for the worst and hope for the best is appropriate here.

Option 2 is better if you're looking to save money and be more actively involved.Pick the best for you in your area but think about the other as a backup plan.Also keep in mind that hiring any onsite personnel is going to add a lot of cost so immediately think about how you can scale them up. 

4 years old may still have 1-6 years left on the manufacturer warranty

Having several years in manufacturing experience of cabinetry, the cost to assemble cabinets after parts are cut is minimal because from what I’ve seen costs to package parts versus packing an assembled box is greater because individual parts need packaged.

This way you have a sliding scale that can account for discrepancies relating to property condition i.e. quality and desirability of each property.

Most having to do with economies of scale.