Generally if your credit is good and you have enough income to cover your total nut under 43% the only things you need are: the money, property that is in habitable condition that cash flows.

Not sure of the condition of the roof.  

Other than that, as long as their unit is in good condition, I would say return the funds.

they may give you conditional approval. 

All in all, the property will likely require north of $50k in repairs/updates to be put into a market-ready condition. 

What condition is the garage in?

Does anyone have a solid resource for pricing rents based on a revised property condition, or would be interested in providing some guidance on pricing it? 

There is also plenty of risk with outstanding liens, damages, property conditions etc.

I think it would really depend on how tight the timeline is, whether they are planning on doing a 1031 exchange if they were to roll into another investment, whether the tax savings on the 1031 outweigh the loss they may take rushing to sell within the timeline, and the location and condition of said duplexes.  

Do you have info on the condition of these units?