I am inclined to advise to keep it as rental since you will have low interest loan that we might never see again.

I would try to keep the two separate so that a bad result at one didn't bring down the whole enterprise.I would also be inclined to bargain the 700k price down considerably.

,It depends on the time and inclination of your friend.  

I'm inclined to LLC as I was told LLC offers better protection and may have better tax treatment.2.

If this were for a potential flip and things looked incredibly good, I would be slightly more inclined to purchase with a little bit less of an emergency fund as you would be creating a quick turnover and could replenish the savings (hopefully).

(Which is another reason forums such as Bigger Pockets are so valuable to us for feedback.)One point was raised in the discussion that I'd be interested in getting more input on.As an accredited investor, I'm more inclined to make a few larger investments than numerous smaller ones.

The educated investor can bring value to people who have capital (equity, retirement accounts, etc.) but not the time (or inclination) to look for and process deals.

I would be inclined to deduct the water from their rent payment and send a notice that they did not fully pay rent.  

If the rents support the mortgage and the note has a good performance record then the lenders will be more inclined to work with you.

I suppose that since you are looking on this site and your intention of duplex, tells me you have some inclination towards being a landlord.