My little nest of MH investments is along the Norh San Diego Coast and I can tell you from over 30 years in this biz doing everything and anything there is to to in it that I've never once had the kind of tenants you're describing. 

Any paper appreciation is temporary and subject to to economic fluctuations.   

I had the engineer evaluate the structure and I fixed the posts, hired electrician to to electrical work and fixed the other items.

My current mortgage is a 3.4% 30 year conventional loan and I want to get a second loan to to buy another home and rent this one out.

From what I've seen is, that there is a conflict of interest with a contractor you know or are related to, to get the house done up to par.

But I don't plan to to buy a house that doesn't need rehabbing.

Each state has laws which define what must be disclosed in a transfer of real estate as well as to prospective residential tenants.However, laws are intended to to define the legal minimum required.

They just want someone else to to assume the mortgage payments and give $8,000 as a down payment.

You will get up early and work weekends when you have to , to get the job done.If you've got some savings, and really want to invest, start small: midwest maybe.  

($117k is NOT a large mortgage).Seems to me they should try to to ride it out (if they still have any of those "toys":- SELL).