One challenge that investors often face is our taxable income.

I faced the same dilemma two weeks ago.

If those cabinets have good boxes (i.e. plywood) and you want to save costs, you could re-face them (or maybe even repaint).Alternatively, if you replace the cabinets, I would look for ones with good quality boxes that you could reface down the road.  

Even if you got this place and rented all 3 units and lived elsewhere you'd still be losing money on it or barely breaking even.

Additionally, before you move forward with the conversation, be cognizant of the risks to the partnership that you face by attempting to negotiate for a few additional percentage points.  

I joined last month and the ability to network face to face with local investors is sort of priceless.

I have a piece of bare land in Washington that we had originally thought we would build a personal residence on.

Let's face it, selling real estate is a pay to play game. 

what liabilities will I face?

You can barely get the power company out to fix a sagging wire or any other issue ( wire on tree branch- 3 months to fix) if it's not  directly  power service related.