But I am sensing major inexperience, lack of due diligence and just a bunch of red flags in general. 

Their inexperience is going to require "babysitting" them until they learn the business, which takes a lot of time, yet they want the lowest price!

I think your investing in experience and they will make the right move, just do your homework if that's the route you go. 

I'm the youngest in the group (by 20+ years) and my inexperience in real estate transactions is combated by my ambition and ability to work with numbers (this is where my job as a credit analyst comes into play).

I've dealt with 2 evictions in my career, but those were due to my own inexperience when vetting tenants. 

However, I have not built my team yet (real estate agent, lender, property manager), and I’m not sure about owning a property I cannot visit and monitor myself, given my inexperience as an investor.Economic Outlook: I’m a bit concerned about the economic outlook but can hold onto the property even with lower rent.My Questions:1- Should I sell the property now and look for better deals, considering the declining market trends and my decreasing cash flow?

Inexperience isn’t a bad think, just understand that there is greater risk.

Not a good idea for some of the same reasons-high costs of purchase combined with inexperience and renos gone bad/out of control. 

Considering my inexperience in the market driving a lack of capital prepared, I've been looking at the requirements of an FHA loan.

I’m willing to bet you’ve done a lot of research about wholesaling, flipping, etc. but still feel lacking in experience and knowledge.