Below is what you need to know that underwriting and programs guidelines don't tell you when considering a 223(f) apartment loan.AdvantagesHighest LTV in the marketEliminate refinance and interest rate risk with fixed rate terms up to 35 yearsLow fixed rates based on GNMA securitiesNon-recourse and assumable - makes for a great exit strategy especially in a rising rate environmentNo defined financial capacity requirementsNo geographic restrictionsNo minimum population requirementsSupplemental financing availableDisadvantagesLonger processing times - 120 days at a minimum (6-9 months is typical)Higher fees - HUD and FHA fees add to the overall cost of the loanMortgage Insurance Premiums (MIP) - Initial and annual premiumsAnnual audited operating statements requiredReplacement reserve escrows requiredHUD property inspections requiredOwner distribution restrictions and Cash out restrictions 2x a yearProperty condition is important to HUD, both during initial underwriting and over the life of the loan.

Most times, these parks try to keep their tenants and may have issues refilling the lots due to market demand and/or condition of the park.

It is in bad condition needs a lot of work.  

I would look at two things--condition of the place and reserves (sort of two sides of the same coin). 

Unless it is pretty standard in your all's area for a tenant to pay an agent's commission, I doubt there would be many (if any) people willing to rent the apartment under those conditions. 

I want to base my purchase on the current numbers/conditions and not off the potential the property has.

For renovation it depends on the size of the building and condition.

For me, that makes life easy because I don't have to negotiate commission with you (since its paid by the seller), you won't need the hand holding of a first time buyer, and you are someone who will buy and may likely buy multiple times.

Requirement to provide habitable housing only applies to conditions with the property that the landlord has control over.

I used 0% interest credit card promo to finance $20k utilities to the property and it still needs 10K to get it in mint completed condition.