I'm on a call now and they same decent and honest, but some reviews on here and other sites are a bit concerning.

In general, if I personally don't like something, it's less of a cause for concern than if a good tenant doesn't like it.

It’s also a good idea to assess their track record in handling alternative investments and supporting clients through changes.I’d be interested to hear how Inspira addresses these concerns going forward.

I say we dump the deal but the other 2 partners want go ahead with it even though the lender has now cut our SOW budget from $65,000 to $40,000. 

Not the best idea to cut costs.

The IRS is concerned with the tax return that is reporting the activity of the property. 

Despite my concerns, I allowed the appraisal to proceed.

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

Can some of your concerns be mitigated (locally) through things like strong tenant vetting and property class selection?

Electric: is the easiest to split, but may require holes cut in walls to separate the units.Gas: gas lines aren't as flexible as wires, but it can usually be done affordably.Water: most cities will NOT install additional water meters on a property.