@Jonathan Ahle Turnkey can be a very good way for a new investor to start out - particularly if you need to go out of state. 

FHA is a non-brainier way to go for 4 units or less. 

I mean there are also numberous repair cost books called construction estimating books but who in the world understands them and how accurate would they be in any particular case?

My wife is a realtor so thinking we would drop the 3% commission from closing as a way of negotiating down the buy price since we need our mortgage payment on the new home to remain very close to what we are currently paying today (so that our life living costs remain within my salary/income so not depending on my Wife’s non W2 income Realtor income).

Those costs that you incurred in 2017 and 2018 and that were allocated to the non-rental portion to your house, effectively would/should have been capitalized.

@Mike Halim - If the owner does not know, the only way to find out would be to pull title and look for the SNDA (Subordinated Non Disturbance Agreement) that was recorded on title. 

Look through the items and decide what are non-starters for you.

The loan and title are currently in his name, and we signed a contract (non-notorized) to be 50-50 partners. 

Continue with the court process and get the judgement for non payment of rent.

I am thinking if these were owner occ though ( I mainly deal with non owner) and the new rules it could be tougher .so I would plan on paying them off.. and if they have not filed a default then you just learn the time lines in that state and you know worse case scenario when you need to pay them off.