So the PM brought in this high risk tenants and they caused a smaller water damage a few weeks after they moved in due to loose washer hose. 

If you go in with a me first attitude then it's bound to not work out.

.- High Earnest Money Down- If you are experienced enough, remove contingencies - this would require that you close or else you loose earnest money.- Attach a letter of intent with your offer- Keep sourcing for other deals and do not depend solely on this one.

Also super important note - if you try and purchase two or more different 1-4s at the same time, tell your lenders and your realtors because it affects your pending capacity and you run the risk of loosing one or both of your deals if you don’t proactively share that info.

You have a contract to buy at X dollars, you are bound to do so unless one of your contingencies allows you to do so.

I have a friend who we'll loosely partner on it.

This touchy-feely nonsense about connecting and feelings is nothing more than teachers exceeding their proper bounds and usurping the parental role.

It is loosing about 200,000 people per year net.

Those will be the middle managers who loose their jobs.However they are building many $200-$300,000 houses any more....and the demand for those is high.   

What's loose lay?