I feel like the more doors the lower the risk.

On the other hand, A LOT depends on your purchase price and your level of efficiency in operations.

It would take a long time at $500/month to make up for the $200,000 in equity that you could re-invest into a lower cost of living area.

If you hold your investment in the OZ fund for 10 years then the resulting gains are TAX FREE at the Federal level. 

Im not a seasoned expert, but not new either - my take is that you should lay out more info of what you are planning to do with the property and exactly how much lower it is than the surrounding area. 

Suggest a FHA lower down payment larger MF in a more active town with high paid jobs....

The upper unit (2nd and 3rd floor) is approx 1500sqft and the lower unit (ground floor) is approx. 1000sqft. 

- Any tips/suggestions on what type of insurance to buy for a Condo and the level of insurance needed?

MOST parks will not even consider letting an investor do rentals there as renters can lower the quality of a mobile home park very quickly. 

The down payment/overall price, insurance, taxes, etc seem much lower and the ROI looks to be the same, if not higher on the SFH.