I am unable to see the inside of the property, the pictures were just offered to me as idea of shape. 

They do not allow you charging for your time, though if you pay a handyman/junk company, you can charge for their labor Take pictures and write-up everything that the deposit is being withheld for.

If they are all equally qualified (areas covered, knowledge about investing, etc) I'd tell them all that I'd decide with a series of coin flips and I'd tell them that you're doing that to avoid damaging the relationship that you value so much.It's a hard situation, but if you're upfront with everybody, you should minimize the chances of hurting your friends.  

My big picture goals for real estate is long term rental properties and flips.

My end goal is to have a passive income stream that will, one day, become big enough to where it can cover my expenses entirely.

I took off the top 1 foot lattice thing, took pictures and went down to city hall. 

Named Perils coverage is called that because the Perils (causes of loss) that are covered are Named in the policy. 

Do you have pictures of the separated mailboxes, doorbells, electric meters, ect.2.

I'm hoping that you could take out a mortgage on the property for $50k for the engineering and if you had to sit on the property, you could at least farm it (or rent it out to a farmer) to make enough to cover the loan payments on $50k while you wait for an upswing. 

Let's say you can buy it for $75,000, then you figure what it will take to fix it up, amount to cover the time & costs of owning it (holding costs) and the costs to sell (real estate agent, closing costs).