While none of these options allow for immediate cash flow on the property (we are on the northern CA coast) the ARMS would allow us to break even.

The sellers says it's just college boys and that's to be expected.He's currently getting good rents...as unbelievable as it may seem and if cleaned/fixed up it could make more as well as increase the value of the property.We own several coworking/coliving properties in the US and Mexico, so we are used to hospitality and properties out of state.However, my questions are;Is this a norm for college students, or student housing? 

My wife and I move into the house since we are looking to move to the area anyways, and we all do a lot of the rehab ourselves, probably with my wife and I doing a little more since we would be living there.In this case, how does the friend with cash get their money out of this deal in a time-efficient manner, since they're primarily looking at this as a flip? 

Louis - Who We Are and What We Do (p. 8)

It likely would require something grossly negligent with huge consequences to have a chance to go beyond my coverage and we are not that negligent. 

Why mention the tenant will be responsible for appliance repair above ordinary wear-and-tear?

Yes it is a blank slate and we are both open to making it work in whatever way necessary.

We are splitting up capital contributions at 50%, but see having different involvements in the repair process.

We are excited to be a part of your investing journey to help you reach your goals. 

We are hoping to see a better market in 2025 with lower rates and hopefully some deduction in property taxes, though.