@Marco Manomat I agree with @John Underwood seller financing is likley your best bet.

If you can keep your overall income including the cap gains in the limits for 0% cap gains is your best bet if possible. 

@Lauren Alpert They broke the lease and by most states legal standards, they should be penalized but you are in CA so all bets are off.

But, without seeing pictures, I think trim and then caulk would be the best bet.  

To get the most accurate and up-to-date information your best bet is to get in touch with a realtor in the market you're looking to get set up with direct access to the MLS. 

I bet you have looked at quite a few properties in your time. 

If its the nicest house on the block, when people get there and see the mobile home next to it and if the other areas look not so good, probably not gonna get repeat guests.If this is your first, it will be easier for you to learn the ropes with a property you will be visiting from time to time and you get to use it when its not rented.That's my cursory thoughts based on what you have shared so far between those two choices.

It's a sure path to failure. if you're goal is cash flow and you live in a high cost market which is any where in the Bay Area, you really don't have a choice but to go out of state, otherwise you're just trying to pound a square peg in to a round hole.

Going forward, you can just include additional language/terms that provide an opportunity for contractors of your choice to inspect the property during the due diligence period.

I'm sure there's still the risk of getting sued even with commercial lending but I bet it's less than the residential side.