That will show you the basis allocated to those 8 and from there you can calculate your gain to see if your passive losses will cover.

The rent does not cover the mortgage, not even close, so subject to isn’t in question.Without much equity I’m assuming I should not pursue and tread lightly w/o further damaging the position the landlord is in?

And that should be enough properties to cover our income! 

Does this cover my bases?

I have 10% cash to put down and can get a bank to cover 60% of the Value,  how does someone obtain the additional 30% from open market funds?

Together we feel we are able to cover all areas of investing in multifamily properties.

My idea was to obtain a bank loan to cover the outstanding balance on their current loan and then create an owner financed note for the remainder of the purchase price. 

Building wealth through real estate takes time and persistence, so don’t let yourself suffer the “paralysis by analysis” that many people fall prey to.

If you make $50K a year that $200/month cash-flow isn’t going to be taxed highly and your mortgage interest will cover it.

They didn't check, thinking the agent had it covered, so I'd personally talk to their lender and make sure it's a strong pre-approval, unlikely to fall through, before proceeding.