There is no guarantee that the next tenants will be better or get along better.Examples:Operation, Maintenance, Storage, Alterations to Premises: On a continuing basis, tenant agrees to: Keep premises in a clean, neat, and sanitary condition; no parking, storage, or accumulation of debris on lawn or yard.Not store non-operating vehicles, nor boats, RV’s, motor cycles, trailers, firearms, equipment, tools, hazardous materials, liquids, paints, fuels/oils or chemicals on premises without landlord/agent approval; no waterbeds

They are outlined in Chapter 12 of the VA lenders handbook: http://www.benefits.va.gov/warms/pam26_7.aspThe appraiser will be looking at the home to determine if it meets the MPRs basically ensuring the home is safe, structurally sound and sanitary.

I have a close friend that has been involved in commercial real estate for more than a decade and have heard the ins and outs of his deals as he scribbled them on napkins etc. 

Failed to maintain exterior service walks, passage, and areaways in clean, sanitary, or safe condition3.

@Austin Faux if everyone wants to close, then a napkin works with exactly what you wrote in your post on it.

Off the cuff it looks like you would need a max purchase price of about $385 to be worthwhile (I tripled your reno cost for my back of napkin analysis) and any lower would be gravy.Are your closing costs including realtor fees?

@Robert BerganzaNo, the sanitary lines and water lines are literally less than a 1000 yards down.

Here are two of my favorite lease clauses that should help you. a.Landlord informs the Tenant that the sewer system of the Premises is not designed to accept many types of items, included but not limited to, paper diapers, sanitary napkins, tampons, and children’s toys, balls of hair, grease, oil, table scraps, clothing, rags, sand, dirt, rocks or newspaper.

So here is our process in a little more detail.1. got property under contract and back of the napkin see if it pencils.2. did phase one  it came out clean 1k   this is a MHP that's on city sewer and water.3.

As any tenant related repairs under $100 are covered in the lease (ie: sanitary supplies in the toilet, requiring plumber) no?