Ya, i understand that commissions come slower and bigger compared to homes, but i was prepared for that wait, because i am currently living all on my passive income of my current rental portfolio as long as i stay within my means and have a few months worth of living expenses saved away for the times i loose a renter and have a vacancy. 

Is the initial negative cash flow ok to overlook knowing I can cover the difference AND that the deal will eventually lead to positive cash flow in excess of $100 each unit per month once I re-finance and move out of one of the units?

--- Now if you're trying to refinance and take the cash back out sure it would affect that and you would be on 'pause' from being able to do so, but you wouldn't be loosing $ on this investment, you would still be cash flowing and making a profit.

Here is a part of the letter, I sent to the seller:The home inspection was completed on September 29th (please see attached) and the following issues were pointed out: 1.The wooden floor frame in the middle unit is deteriorating due to either prior water leak in the bathroom or due to moisture infiltration through the walls and foundation.2.There is evidence of significant settlement under the middle unit bathroom and north closet.3.The settlement of the floor and walls has also resulted in settlement of the roof frame above this area, ceiling shows cracks.4.There is an obvious depression on the roof – water is ponding on the roof above the middle unit, which adds excessive weight on the roof and potential for leaks.5.Asbestos containing material has been found.6.The current bedroom heat installations in the north and south units pose a safety hazard from carbon monoxide, fire and oxygen depletion.7.An electrician performing upgrades did not use ‘arc fault breakers’ in the north and south unit breaker panels, which is required by the national electrical code.8.Upgrades to the electrical system, promised by a real estate agent, have not been completed yet.

I will happily guide you but if you getting cold feet it's probably good to back out, I consider my self a pretty smart investor, when it comes to buying income property but when it came to buy my personal home I got blinded by other things and forgot that buying a house is a business transaction that you have to enjoy I didn't loose money but I haven't made a ton, like all other investment

Also, since they are much more loosely regulated, it is easier for a real estate developer to commit fraud and not be detected.So it makes sense to me that there are rules in place to prevent "the average Joe", who probably isn't very sophisticated, from being ripped off.

One of my objectives is to avoid situations where the likelihood of being sued goes up significantly and then the likelihood of loosing is above normal (I realize I can't avoid everything unless I do nothing, think woman with hot coffee and McD's).

Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC.

Blown-in has advantages but won't touch noisy pipes or creaky floors or loose siding.

I had a real estate broker license for about 30 years but I never did that full time.Always remember to do the math analysis on your prospects and try to look at them before you make an offer or at least have a clause in the sales contract that allows you the time (usually about 15 days) to make a detailed inspection of the subject property and possibly back out of the deal without a penalty that will excessively hurt you.There is so much to say to you but I am bound to forget something.