But not the 20% with the reserves required etc.  

Typically, you are at least more favorable for cash flow out of the gate with a MFH as opposed to a SFH, but I couldn't confirm the likelihood of positive cash flow. 

HI,Being new to the process I almost got held up on the fact that I don't have much cash on reserve.

This is where your agent should come in and guide you through all these items and confirm a lot of stuff that was asked about and they should be able to lead you to getting money back or a successful reduction in price.  

Keep in mind that any plumber who will give you an estimate for re-lining the pipe will attach several disclaimers to the quote, including "if we find that the technology is not workable for the particular situation while we attempt the repair, we reserve the right to switch to full replacement".  

@Ryan Jones your analysis looks fine, my question, however, did you confirm through the HOA bylaws and covenants that rentals are permitted in the complex?

As far as exit strategy, I was thinking of each of us reserving the right to buy the other out for fair market value in the event of someone wanting to exit. 

If they're decent tenants, I'll also incentivize them by letting them leave without cleaning and still get a full refund of their deposit immediately after confirmation there's no damage.2.

They adjust and can be called due, which can cause problems as one never knows what interest rates on long term mortgages will be, The Federal Reserve has been announcing rate increases, so long term fixed rate interest continues to be in demand.  

I even confirmed with the City of Wilmington staff, but you are right on with your question.