Water damage repair

Based on the pictures and the price you paid, I would not scrap it and no it will not fall apart driving down the road. It looks to me like it was hit by something from the out side and water got in over the years and damaged the wood. If you post some pictures after you remove the cabinets of the inside and floor damage we can give you better advice. You sound like you are quite capable to make these repairs yourself and it won't cost thousands of dollars. Just keep in mind after the structure and exterior is repaired if the surface dose not look as good as you want it to you can always put a decal or false door over that area. Enjoy your MH and go camping.