Then sell the property and start doing fix and flip or fix and rent. ( I prefer to sell this property as it 100km away from my student rentals. ) Not sure if I should renovate the lower unit to sell.

That would make this much more complicated, since you'd likely need lender approval.In any event, you'll want to check your mortgage (if you have one) and the lease to see if you can transfer or assign.

We would take this house in return for a 500k property that is NNN leased.  

There are some pockets in this lower price range but they are hard to find and sellers won't let them go for the price you want often. 

Here $10 is reasonable) to each unit's monthly cost for the work to handle this utility cost and associated billing and put this in writing in each lease renewal.

I know a lot of investors have done very well in Peirce County but I just haven't learned or know enough about that market to make an investment there.Washington state properties are expensive and can be difficult to make breakeven let alone cash flow at this moment due to the combination of high prices and interest rates. 

From what I've seen in this area right now, it seems like you'd have a hard time paying market LTR rents and making a good spread. 

Need an advice if this would be a good idea or not. 

Quote from @Morgan Leiviska: How I would build this database for you would be to connect with people at local meetups that you find.

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