The 2nd negative can be prevented, if you buy in a community that contributes to their reserves, and has a fully funded reserve schedule.The positives are: you have less to manage.

We want to do it the right way the first time so we do not compromise our relationship and prevent any unforeseen events.

There was fresh pee on the hardwood floors and stains from what appeared years of pee.  

Free Advice: Create two LLC's one for flipping and one for your passive as this will prevent domino effect if one aspect fails and make sure you setup proper firewalls to prevent commingling funds. 

My question is, are there any rules preventing me from working exclusively with investors?

It's better to prevent any "targeting" in the first place! 

It can also be used in a wall near pipes to keep them from freezing if freezing is a problem, but it will provide heat that keeps the building warm and will prevent freezing. 

There's a similar property that just went under contract and there's potential to make a good hunk of change with the one I'm looking at, but didn't know if anyone had experience with a ROW preventing a sale or  being able to get a good market value for it.Also the adjacent lot the ROW is shared with does not appear to be inhabited.

Either you sell at a higher price and give him the controlling unit or somebody else sells and you're left holding the bag.This guy wants the whole building to take it private and convert to apartments.Somebody else will stand in his way and prevent that, but their life will be miserable. 

There are self rental rules in the Internal Revenue Code to prevent this.