Location is fairly good, land is on a major rd and the back part of it connects to an established neighborhood with older brick SFR’s All units a tenant owned, utilities aren’t included and overall condition of the park is on the low end.

I am actually fairly familiar with the O-Zones & O-Funds (at least as much as one can be since Treasury hasn't actually issued guidance yet.)  

He is playing you.

The amount of rental income to include in effective income is based on 75 percent of: verified prior rent collected on the units (existing property), or the appraiser’s opinion of the property’s fair monthly rental (proposed construction).

Competitive sports,however, leveled the playing field for me and afforded me invaluable opportunities that I am eternally grateful for.

Tenant would like me to use my insurance to pay to have it cleaned up but it didnt hit the home, so my homeowners insurance doesnt come into play.

Of course I’ll treat the tenants great and fairly, but it still has me nervous.

That isn't much to play with and you'll be very leveraged.I think you should try re-doing your budget and saving up.

Assuming the amount you're paying is enough to cover the payoff.A short sale would come into play if the amount you wanted to pay doesn't cover the payoff.  

Buy/hold as an existing income seeker or will you be looking more for value play that you can renovate then either hold or flip out of?