The van looks pretty good but have the mechanic check it out first before you buy it. It looks like a conversion van to me and probably would to most of the neighbors. You might have to get rid of the awning though.
You can sleep on the couch bed when you can't put the top up. There are lots of places where you can camp for free. Check here -
http://freecampsites.net/usa/You could also try WWOOFing -
http://wwoofinternational.org/ or work camping.
There's a lot of good information about van dwelling here -
http://www.cheaprvliving.com/forums/ Good luck!