Also, as mentioned above, this is a great way to start building relationships with small local credit unions and banks which offer the best loan products for investors. 

Sort of split the difference.2) Offer them moving expenses and/or to return their entire deposit if they decide to move out3) Discount the rent while the renovation as going on since it will surely be an inconvenience

Built in 1987, the building features four spacious units, each offering 1,012 square feet of living space with two bedrooms and one bath, and a cozy 506 square foot one-bedroom, one-bath unit.

Costs and any inspections, work, etc that are needed can be part of your offer to the seller or covered during due diligence if you don't buy it "as is".

Local is inflated prices, high property taxes and sky high insurance.

We don't have vacancy issues and both are high end listings.

They're crazy high numbers. 

Charging a fee for a technician visit for any appliances diagnostics.How do you set the expectations from the start to avoid people with incredibly high expectations?

He has about 15 years of extensive experience in those fields and has been highly successful in each of them. 

If they can present quality information describing why they need the capital, what the current state of the asset is, how this capital will be used to solidify the asset - then at least I can evaluate the capital call and make a decision to participate or not.