It kind of depends on the type of properties you're looking for funding on.

Is this just some kind of handshake deal? 

The 10k is the difference in the points.With lender 1 will cost 10k more in points.Lender #2 is kind of unknown.

The LP got it from a friend who is in some kind of real estate mentoring program.

But I have to ask, is this unit attracting this kind of tenant? 

Hey everyone,I'm in the process of purchasing a multi-family apartment building and just discovered none of the current tenants have any kind of move-in inspection. 

It isn't doing "SubTo's" that is illegal, it's how they are done and how they are treated and what your assumptions are and what your unpredictable seller does.Attorneys love these kinds of fights.

The upper story and deck of the residence come out over the top of the motel forming kind of an exterior corridor or breezeway that pops out on the front of the building. 

BiggerPockets is free so it attracts all kinds of characters which can taint the picture. 

I have all three kinds of parks- LT RV, POH and TOH so can help with repair estimates but so much depends on location and access to reliable repair services.