When it says "Compressor 35 psi for 10+ mins" that sounds like they did an air pressure test on the water lines and usually means the lines are present to perform the test.

Obviously run the numbers on the whole package and each individually, but sliding the purchase prices around on a few to play with LTV on financed properties would let you stretch your capital and pre-approved amount further.

However choosing to sell because the asset you have purchased is performing better than expected....that I dont think is a good reason to sell.

Considering I only have the ability to put down about 10% at this point, what other options do I have for acquiring this property outside of owner financing since this property doesn't need an extensive rehab and is currently occupied with tenants. 

REOs are sold free and clear... or at least that is the bank's intention when putting the property on the market.If a title issue appears that prevents a transfer (these things do happen) the bank either remedies the problem before closing or, if the bank cannot perform, the buyer rightfully receives a refund of earnest money. 

He normally rents it for $1100.All I have to do is clean, perform minor repairs, and paint the property.  

There are a thousand reasons why someone would sell a performing property and none of it really matters.

Now, if your property manager was open to performing those other tasks, great!

With current renters willing to sign a year-long extension, we have the place rented for $1,025/month.   

The firm has had MHC as its top performing property type for the last year and a half and a November 2018 report described MHC as “one of the most attractive property types in both the public and private markets due to 1) a best-in-class cap-ex profile; 2) structural barriers to new supply; and 3) still-too-high nominal cap rates.”I hope this helps those considering investing in MHCs - happy to discuss further.