These are commonly referred to as C classOrder a third-party property inspectionMake sure the property has been rehabbed to turnkey quality that will maximize your cash flow (roof and HVAC updated, ceramic tile it kitchen and bath, vinyl plank hardwood in high traffics areas, durable carpet installed in bedrooms, external fences and buildings addressed during the rehab, supply hoses replaced under the sinks, etc) otherwise your cash flow will go to maintenanceBe skeptical of the one-year tenant warranty, that just means the turnkey provider is making a abnormally large profit who uses gimmick marketing to secure investorsVerify rent range through other property managers, Craig's list and ZillowAsk if permits were pulled during the rehabIf a tenant is in place, ask to see the tenant fileRemember, you can fix the house, you can fix the tenant, you can fix the property manager, but you can't fix the area.  

In a partnership, you are pretty much permitted to divide up gains and losses in any way that you want.  

. § A company offering more than $500,000 but not more than $1 million of securities relying on these rules for the first time would be permitted to provide reviewed rather than audited financial statements, unless financial statements of the company are available that have been audited by an independent auditor;o A description of the business and the use of proceeds from the offering;o Information about officers and directors as well as owners of 20 percent or more of the company; ando Certain related-party transactions.

The key here is, what does the Oakland rent control / just cause ordinance permit you to do?

I have a friend who built one for $20K, around 600 sf, no permit.

does anybody knows about the title search, open permits, liens on the property?

Building an apartment in it could be a possibility but I don't think I could pull that off with permits.

As a newcomer, I really scored in my first deal; so I am trying to deal with this anxiousness to dive in once again.

It will require building permits and in order to get them, Architects, engineers, and Inspectors. 

Most of these are requirements for new permits and codes but can be a go to source of exposure in the event that something tragic happens.