I do put a sign on the front door letting everyone know to turn the heat down to 50 and turn the water off at the meter before they leave.

The phrase "brought up to code" is likely an over-statement of the present requirements of the pre-meter inspection.Anything new of course has to be installed according to today's code - but anything existing which is still in working order is OK to leave as-is.A believe an exception to this is ADA requirements if they apply to this building.

If you have had troubles from them otherwise and don't care much if they leave then still offer to pay a quarted of the costs like you suggested with your reasoning.

For you, thus means you will have a little more skin in tbe game.  

If you were to modify the contracts then compliance can be required, so leave them the way they are or meet the new requirements.

Then, I simply used the money as the down payment for a rental property because I knew the rental property would 1) pay the mortgage and 2) pay my friends back and 3) leave a little cash for me.I own all of my rental properties in an LLC, so would set up a personal loan between my friends and I and then make an 'ownership investment' into the company.

"(45,000+3,000 closing+1,200=$49,200)This leaves me with two questions:1) Why would anybody go with B and only take out $49,200?

I would suggest leaving room to add on.

You can also choose to just perform the dust swipe test and leave it at that if it passes (the swipes should pass unless you have areas of peeling lead paint in which case you should bite the bullet and fix this).

Looking to buy more houses in the south houston suburbs and grow my real estate rental properties to the point that I can leave my job in the oilfield.