Once you decide, make sure you have a legal agreement drawn up in order to make this official. 

You would only be obligated to pay for installation if you had falsely advertised that hookups existed when they actually didn't.Make a written agreement with him that he can have licensed, insured professionals install the hookups at his expense and that the hookups become your property when he leaves.

Or do we have them sign a lease agreement right away?

How do I go about this, do I try to track down the condo association president and we come to an agreement about the new fence, or do I just go for it? 

Everything seems standard with the loan except they require a signed lease agreement from a tenant at closing.

The biggest thing from my perspective would be creating a recorded legal agreement between you and your friend detailing the exact details and structure of the investment together.

Consider getting an ESTOPPEL agreement signed by the tenants.

@Drew Sygit and @Scott M. thanks for the info guys I'm learning something new everyday looks like I am going to have to get this replaced and updated my rental agreements for future tenants.

Create LLC with you and Partner and once closed sell share of the LLC to Partner for finder’s fee.Create a Finder’s fee agreement with the Cash buyer.How to be a great wholesaler1.

Can any one else provide some guidance here on what kind of agreement this would be and how to keep moving forward with this deal?