Thanks everybody - really appreciate your feedback. Many of you have brought up viewpoints that I had not considered and it's been very helpful in my search. Please keep those comments coming!
I have been running around like crazy for the past few days looking at these three options, and thought to share my experience for the benefit of others on similar track.
RV Park Option - To my surprise, I was able to find many RV Parks that exceeded my expectations. Many parks had long term residents. Many resided in neighborhood with low crime. People generally tended to look out for each other - i.e. people immediately knew my truck didn't belong in the park and that I was a guest.
Many parks offered amenities such as a swimming pool, a small private garden area, a laundry facility and some even offered shower facility as well. Most parks tended to be quiet and peaceful, surrounded amongst trees, tho some were basically gigantic parking lots. The age group tended to be higher than 30's, typically in 40-50's, many working couples. There were many families with children, which was encouraging. (I half expected to see a community of loners that is drug ridden and crime infested but this wasn't the case at all.)
Most parks required that RV's be less than 10 years old. Typical space lease for our area is between $400 - $500 range, which includes water, garbage and sewer. Electricity was not included in any of the parks that I've been. As luck would have it, Walmart is within a half of mile of several of the parks and there are about 6 or so parks to choose from in this area.
Overall pretty good, with only two things that bother me - one, is swallowing your pride in terms of perceived social status and two, the money paid is not invested.
The 40K Condo - The condo was located in a very bad neighborhood and the condo itself was in bad shape. Distance to downtown was the main advantage of this condo, but due to the fact that it's located in a middle of a very undesirable area, I've written this option off completely.
Some of the positive point were that city is trying to clean up this area and has raised rent. As a result, many of the former "residents" have all but moved out of the complex. Also, city has provided a small plot for the residents for gardening.
The condo can be seen here:
(This is my website I just created on blogger - nothing commercial - click on each picture to enlarge)
The 75K "short sale" house - Spoke to several brokers and found out the latest "game" in the real estate market. The gig is that many agents are listing homes as "short sale" at really low prices which draws people and then they take bids from this interest. So the sale prices are much higher. The listing agent that I spoke to wanted 135K for this house (825 sq. ft., 2 bedroom, 2 bath, 0.04 acres with appraisal of about 80k - 40k land, 40k structure). I immediately declined to make offer.
I would estimate that over 90% of current real estate listings for a typical 3 bedroom, 2 bath, 1500 sq. ft. homes are "short sales". In my opinion this is nothing but a scam to draw as many people as possible to get higher prices.
As interest rates are rising, I believe home prices will head lower again if the trend continues and there will be better bargains. This house may really be a 75K home pretty soon.