I think THEY are immoral for demanding anything at all other then their security deposit, should that be warranted.

Note they know their limits and I recognize jobs that warrant licensed work.  

The Buyer and the Seller understand and agree that the Broker neither warrants norassumes responsibility for the physical condition of the premises.IT IS NOT THE INTENTION OF THIS PROVISION TO PERMIT THE BUYER TO TERMINATE THISAGREEMENT FOR COSMETIC OR NON-MATERIAL CONDITIONS.Buyer shall be responsible for the repair of any damages caused by the Buyer’s inspections and tests;repairs shall be completed in a timely and workmanlike manner at Buyer’s expense.6.2 Seller shall cooperate in making the premises reasonably available for inspections and/or tests.6.3 Specified Inspection Period: Buyer shall have ____________ (not applicable if the number ofcalendar days is not inserted) calendar days after the date of acceptance of the contract by both parties to have inspections, environmental inspections, and/or tests completed.

@Collin Wilson Most of the items on the list do not warrant a discount on rent.

There are more actors in this industry than their are in Hollywood...an abundance of caution is warranted. 

A price of $710,000 is a cap rate of around 8% on REAL property income.You cannot use ANY of the park-owned home income in your calculations as that's PERSONAL property.This deal will only work if 1) you can raise the rents significantly 2) the well and septic is in superb condition 3) you can sell or give the homes away in their current condition 4) the location warrants all of this.Your projection of $47,000 in cash flow is off by about $40,000.

The properties I'm seeing for $65-100k range look very distressed and not in areas that warrant near the $1,500/mo rent rate.

These are more complicated and there are more costs involved, so the amount of improvements to be made will help determine if the additional costs are warranted.  

Additional Info (**Likely warrants a separate post): Looking into FHA construction loans to finance the project.

And if we try to withhold any of the deposit, the burden is on us to both prove we followed the letter of the law and that the damage done to the apartment warrants our withholding the deposit.