Does anyone have a good resource for some sort of turnaround plan or success plan they have put together as essentially a business plan for a multifamily property?

Or do I just take a small hit on my taxes because I am essentially claiming that I am collecting more than I am?

The cap rates appear attractive at first glance, though a thorough analysis of the local markets is essential, especially the long-term vacancy rates.

Is this essential?  

So if it takes a month to find a new tenant..then we are essentially out of two months rent for the year.

You need to know real estate principles, real estate law, and real estate finance.  

It is fairly low-cost and efficient (you can always scale your entities as you grow; there is no need for an ultracomplex structure at the outset), but it is essential to ensure that entities are appropriately maintained. 

I will essentially be managing the entire property/collecting rent and my friend will not have to lift a finger. 

Contrary to how youtubers glorify the profits, property-flipping is essentially a value-add/opportunistic strategy and the key risks you, as the investor, are taking are 1) asset prices, i.e., how well will the market be when you sell the property, and 2) capital expenditures, i.e., can you financially efficiently improve the asset to the end users (renters or users).

If you can do that then you have answered most of your questions - essential skills, client relationship, exceeding industry standards, etc.