A sub-2 should only be done on a short term with the buyer having the ability to purchase, you can   go out  to 18 months, that gives yo time to  refi under favorable underwriting conditions,  after 1 year.

Second, with a 100+ year old property, you'd better factor it in, and 2% may even be light depending on the condition of the building at present.

I have concerns that the market may be peaking and reaching a point where values will begin to decline. What sort of strategies might be of good use in a declining market? I have thought I could buy and hold until val...

To get your deposit back, I suggest showing your move in report with your own pictures as evidence of the condition of the unit.

This can begin with an informal process where they will actually visit the property so they can complete a more accurate appraisal and often results in a reduction if there were issues with condition, functionality, or external factors they had not considered originally.

I received a conditional approval.

What social or economic conditions cause price-to-rent ratios to be lower in the mid-west and certain pockets of the country versus other areas?

You will be buying it based on the business's last 3 years of financial operating data, plus, whatever you decide to add or deduct based on the park's condition/location/amenities.

It looks like it needs about $10k of work minimum to be in acceptable condition (needs new roof), $30k for full updates, but it's rented out anyway already for $2140/mo for the 3 units.

Danger: Fairly new investor trying to invest in multifamily in a out of state market, thousands of miles away, with little market familiarity, no well establish & trusted professional network there, and money burning a hole in their pocket is one of the riskiest conditions I can imagine, second only to perhaps trying to flip in that remote market.