it sounds like you have put the horse before the cart and my question is why would you sign a contract on something if you cannot purchase it that doesn't make sense

Rood and siding is in good condition, and the first major expense I see in the next five years would be replacing all windows. with a 15 year mortgage, at 5% (I'd rather budget high than low) cash flow would be 6056/year.

Here is what we know so far:Out of state land lord Has been for sale for more than 3 monthsAsking price 240kBuilt in 1981Each unit is 1050 sqft 3/2 with utility roomRent is $1050 (I have not seen the actual numbers this is what the real estate agent told us)Landlord is paying water and trash but don't have those numbers.Two units are currently leased Last roof: unknown AC and water heaters are currently working but do not know when they were last replaced.

That sounds like a good place to start  lol

. - sounds good.

It sounds like the 2 couples have a good working relationship so far but this deal is more complex and therefore more prone to misunderstandings. 

@Amy Ranae from your description of the property it sounds a lot like the BRRRRs I have done.    

For example, you don't want to be responsible for replacing light bulbs that go out.  

Are the existing cabs staying, or are you replacing?

Sounds good.