I understand if you want to sell 1 of the lots, but I'm not sure about your concern about paying off the debt so that you own it free and clear. 

I’m new here and just starting my real estate investing journey this year.I live in NY but am looking to purchase multi-unit properties (4+ units) in a growing market outside of the state.Here are a few concerns I’m working through:As a newbie, is it a good idea to buy a property out of state?

One concern is the debate of whether a repair is needed due to renter user or deterioration of item over time.

If I put myself in the shoes of the outside partner/investor friend, I would be very concerned because: 1) unclear and/or potentially conflicting business plan, 2) even with clarity in the BRRRR business plan, unclear in the viability of pulling it off with these market conditions, 3) the chances of dispute seems very high, especially if you're going to live in. 4 years ago, I went through a  similar thought process when purchasing an investing property with mainly my family money, while considering an outside investor to rehab for higher STR ROI... 

While that may sometime be true, full disclosure to all parties should eliminate any ethical or moral concerns (imo).  

What’s your biggest concern right now?

My concern is more in the legalese of the deal.

I am a little concerned that they are newer, and also the wire thing someone mentioned.

The other thing that concerns me is you mention that you are both high income earners but that you are “trying” to save an emergency fund.

In this way, I never need to be concerned about justifying my charge to their deposit because the damage is clear and obvious.