Any quality MHC does not want low quality renters in their community since the investor and their tenants never take adequate care of the lot. 

Just be prepared to have adequate reserves or have the loan secured by the properties...

@Angeline Kung is your priority cash flow, or is it to maintain adequate cash flow while seeking greater appreciation potential than the markets you're currently invested in?

Their motivation will be to do the quickest and cheapest way possible to make the issue appear fixed adequately.

If you're getting recourse debt from a local commercial lender they often will allow you to roll rehab into the loan up to a certain % of appraised value.  75% LTC is fairly common for that size asset, assuming debt coverage is adequate.   

It was working adequately for previous tenant.  

Cheap (5% rate or less) long-term, fixed rate residential leverage is less risky than others like commercial, private, hard money or seller-provided.Couple a low risk loan type with adequate reserves, equity and cash-flow? 

If you aren't worried about liability, then you can consider the joint venture/general partnership and look into adequate insurance. 

If each individual has a lease for a specific bedroom for example and they gave you adequate notice without damage, then give them their security deposit back. 

Most are priced too high to provide adequate cash flow so don't compromise, keep looking and one will present itself.