If he is disclosing the roof was bad - and you already knew that - your position does not change much.  

Is there some kind of break even on what number of units make a development cash flow positive or a good investment?  

Just from looking online I've noticed there's a lot for sale but also what would be good areas to invest in??

So I've been doing some driving for dollars, and after looking up the property tax records with the county to get addresses, I noticed that two of the properties owners are Trusts.

I may have found foreclosures as "Notice of Substitute Trustee Sale"?

Utah house prices are not what you would call cash flow friendly right now (They were 3/12 years ago when I arrived).  I have searched for over a year for single family or multi-family properties.  I watched a webinar...

The only thing I don't notice is water.

Note that, with proper written notice (letter), you can enter the property without his permission to perform repairs (although it is much better to have cooperation).

I am looking to implement a buy and hold strategy for 2-4 unit multifamily properties since I am looking for an ideal balance between positive cash flow and appreciation potential.

Plenty of well-positioned restaurants with great food and great service have failed just because they didn't get enough traction before the promoters ran out of money.If you buy multifamily real estate, however, you're buying an existing income stream.