I assume that as long as I don't require any additional security, there's no harm in simply transferring the deposit from them to me?

For rentals like a duplex you might do better with the sale if you have tenants in them when you go to sell.If the property really needs a lot of work look into getting a 203k loan since you can get a 203k on a house that you are going to live in even if it is not habitable at the time of purchase.

My business habits kicked in so I asked if it was was a good time to talk.

Who is harmed if they borrow and fail from bank loans.

Cut and paste the contracts from the Internet that you like and hope that you don't do anything foolish or illegal that may harm you later.Easy, fast, and cheap vs.

Secondly, we are having a hard time getting a good quote on doing the work required to make the apartment habitable.

They got that way through their daily habits and commitment to greatness.I posted up a list a few months back on our blog (link below in signature) of my Top Ten Self Development Books for a Real Estate Mindset.post up your list of books and CD's that you use to help maintain and improve your real estate mindset.

I have a habit of choking when I ask questions about the house.

OCCUPANCY: Tenant/Buyer [ ] shall, [ ] shall not, have the right to occupancy before the property is repaired and habitable according to local housing and building codes.3.

I choose to buy and hold, had a solid RE investment knowledge, and good personal finance habits prior to separating so the transition was not a big deal at all.