Despite the "common hearsay" aluminium wiring can be safe, provided the correct receptacles/fixtures are used, or the ends of runs were properly pigtailed to copper.You definitely want breakers over fuses and you would want to confirm the existing circuits have the capacity to handle today's electrical loads and that there is additional room in each unit's panel.

I was dead set on purchasing a rental for my first property using the FHA 203k on a foreclosed home, but I am realizing now that personally, flipping a home would probably make more sense since I am not sure if I want to stay in upstate ny or move to a more tax friendly state.

@Andrew Marshok- building in the cash cushion up front makes sense and then replenishing from rents.

Thanks @Tom Day, makes perfect sense.

You're a new investor ...they sensed this and you don't live onsite and are managing the property yourself ....and yes your tenants talked to each other.Now is the time to be firm and better late than never.Go over with the tenants the expectations as set forth in the lease as to when rent is due and what the penalties are for being implemented and be firm.One tenant will possibly try to "test you".... and if they do you need to follow the local laws regarding g eviction ...otherwise they will run all over you.

If we can lock in non recourse debt with a fixed 10 year term I would sleep much better at night- I hope this makes sense. 

I'm sure they have many opportunities to make a lot more than 4% on their money so it makes sense they would get a mortgage on the property.

It would probably make more sense for you then to quit your full time job.

The correct treatment would be that each of you would have been reporting a % of the activity of the property as tenants in common in the absence of any other ownership structure.  

Just throwing it out there as an option if for some reason that makes sense for you :)