I think with an attractive enough offer I could buy this house from them. 

Some hospitals are built in attractive, walkable business districts, others not so much.

The other being that, there are plenty of attractive financing options for stabilized properties vs distressed properties. 

I understand not everyone has the patience and owning rentals isn't as attractive and "sexy" as flipping for a quick $50k profit.

Pros: Lower cost and barrier to begin investingIf you also own the land you can rent the land & sell the mobile home.You have flexibility to resell with seller financing vs. renting for potentially higher yieldCons:Can't rent mobiles in parksThey depreciate quickly & don't appreciateThey will usually attract a less than ideal renter pool

If the local economy does not support that rent level, higher than market rents only attract irresponsible tenants.

If we are going to spend that much on a rehab, we better darn sure install a decent countertop that will attract buyers.

We purchased the illegal setup and are doing some light renovations to the farm house, splitting the lots, and (eventually) developing the third lot that will be produced from the lot split.

. $800.00 per month-600 sqft) possible AirBnB would produce more income per month.1150+800+800=2750Expenses: Taxes $150, Insurance $100, flood insurance: Vacancy $100, Repairs $100, Cap Ex $100, Mortgage $1667 Utilities: Renters responsibility, Total $2217 per month Cash Flow= $533 per monthCash on Cash return: need total repair costsPros:Great neighborhoodTurnkeys come with propertiesNo major issues to the home found in the last inspection.Found no liens or back taxesConcerns: 1.    

If it happens to be a recreational destination (like Brainerd MN) or contains other outdoorsy attractions I might consider a deal.