With that said now it is time to quickly and potentially get this property sold to an interested buyer for a win-win price.Keep in mind that the state of California will want you to be a mobile home dealer, retailer, broker, or real estate agent if you plan on making a profit with a mobile home, even in a park.

I love being a private lender but the fact that it simply increases my taxable income makes me consider shifting some of my note portfolio to multi-family perhaps...You might find this discussion beneficial where similar question is raised: https://www.biggerpockets.com/forums/51/topics/604...Owning notes in your retirement account (especially self-directed Roth IRA or Roth Solo 401k) is ideal since you can have tax-free income for the rest of your life if you utilize one of these vehicles. 

We can't win them all and they are not all deals.

He simply covers the mortgage for the property.   

A much simpler way is to simply buy the house then quickly resell it.

Perhaps they simply ran out of money to complete the rehab?

NEVER again.. simply not worth the risk.. 

Consequently, a lot of borrowers hearing about this going on accessed their lines of credit to get their “Cash/ Equity” out before it was frozen and simply moved it to a bank or other account just in case.The note won’t be called due necessarily, unless you were in breach like not paying, but would still have the same terms in place.  

Otherwise, simply compare rates, points, term, etc, and make a decision.

And then, since I'm the contractor, bookkeeper, tax lady, and homeschool mom, I'm thinking it sounds simpler and worth the extra costs to simply let the guy stay there as a buddy, and pay him through an employee leasing service, do no rental income (or bookkeeping, or Schedule C), and just run it as a regular flip.