Hangups about the deal: *knob and tube wiring throughout (though seller has agreed to update at a cost of $6500 as a condition of sale so I guess that's actually a positive.

I turn a vacancy in 30-45 days, depending upon the cleanup - - I will NOT show in a non-move-in condition.  

If you pay on time during the life of the loan and establish a solid relationship with your bank, they will work with you.Considering current conditions - you were approved by the bank, so it either means the property is a cash flowing property, or your a very strong borrower/guarantor, or both. 

There is no guarantee that the next tenants will be better or get along better.Examples:Operation, Maintenance, Storage, Alterations to Premises: On a continuing basis, tenant agrees to: Keep premises in a clean, neat, and sanitary condition; no parking, storage, or accumulation of debris on lawn or yard.Not store non-operating vehicles, nor boats, RV’s, motor cycles, trailers, firearms, equipment, tools, hazardous materials, liquids, paints, fuels/oils or chemicals on premises without landlord/agent approval; no waterbeds

I get the appeal of the quick turn and should absolutely strive for it IF your unit is renting at current market and is in good condition.

@Ron Boling@Jeffrey H.I agree with Jeffrey that $78k is way too much for a MH.  2005 and newer in perfect condition on 1 acre are worth that up there.98% of why MHs are priced high is because of left over debt from 2004 purchases.  

Why not base the security deposit on the actual condition of the apartment?

Sometimes the home is not able to be lent on in the current condition so you'd need to get a rehab loan like a 203k which in their own right can be complicated.

It doesn't look like they have equity (based on the condition of the second home).

At that price point you will find condition of the property is key and quality of tenant is critical.