I wonder if the bank holding the first mortgage would still want to see some skin in the game....

Money in a deal does not represent skin in the game. 

Obviously you want to do a lot more due diligence before making an offer but seems like a 'decent' deal at least on the surface. 

And as things come to surface let's say a problem tenant.

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

You can upgrade the units, that is generally the most straightforward, a nicer unit will rent for more, granite countertops, new cabinets, laminate/ hard surface floors.

I’m a bit nervous they’ll scratch the surface just a little deeper to make my $200 worth it, but ask for more money to give me an even more in-depth course at a later time.

Banks and a hard money lenders will want a borrower to show skin in the game.

There are several possible outcomes here, and none of them seem great on the surface based on your explanation of the situation.

@David Johnson Sounds like he was trying to wholesale your wholesale without having any skin in the game....