What damage and other things should I look for to consider should I decide to make an offer?

You also have the time and brain damage of dealing with them.

Some of the issues that would be addressed are: Death or Serious Disability of a Partner/Member;Withdrawal;Assignment of Interest;Failure to Contribute Subsequent Capital Contributions;Material Breach of the Agreement; ETC....Any potential issues that could arise during the operation of your business, should be talked about before the creation of any type of entity; then once discussed, put down in writing in the agreement so each person agrees to the outcome BEFORE it even happens.In the event that a Partner/Member violates one of the provisions of the agreement, they then become personally liable for any damages caused by such breach. 

The following are a list of thing that are mandatory:- A/C units (will need to purchase two since this is a two story house in FL)-Kitchen (old kitchen cabinets have had had major water damage, counters are broken and will need new appliances.)

So long as they're not damaging your property, let them be children.  

Grabbing a 12 unit steal in an up and coming neighborhood is the path to awesome profit, if you're right :)Print out the surrounding 6-8 blocks and see exactly what is going on in the area.  

The ones near the house are almost blocking part of the window.

For the students I think I will go to a bank deposit if they want but the bank is on the corner a block away and they have to pass it when they leave the house so that is the only reason I will do that.

I believe you should charge them the additional fee due to the fact that 2 dogs will cause more damage than just one, if you ask a pet owner to get rid of one of their dogs chances are they would not, even if they said they would. 

and patch on the ceiling (HVAC Re-route)- Master Bathroom( plumbing - shower stall not properly installed and leak going down to crawl space, cabinet not secured to the wall, GFCI not grounded, faucet aerator leaking)- Kitchen (damaged vinyl, exhaust not working, very dated kitchen but I think I can salvaged the cabinets and just replace the tile countertops)- Ceiling fans are not operable and missing HVAC registers.- Garage (moisture stains, wall damaged, laundry hose bib leaking), partially converted to a room.