But they also COULD show that the ratio starts decreasing (or increasing) with larger square footage.

Also - on condos or townhomes, an increase in the monthly HOA fees or a special assessment might wipe out your return.I caution you against counting on appreciation.  

Currently we are both in the same condition financially, meaning we have little to no capitol.

Of course you'd be inheriting any unknown liabilities of the LLC, and you'd be assuming the llc's basis in the property and depending on the LLC original purchase price and depreciation taken, a much lower basis than your actual "purchase price", increasing your taxes when you sell.

Combine this with the smaller overall market and your pool of motivated sellers is smaller.Canadians seem conditioned to use real estate agents.  

The long-term tenants are in a 1-year lease that is actually $200 per month below current rental rates - the current owner has not kept up with the rental market, and has not properly raised rent as the demand has increased.

Whats the condition of ventilation, exterior, toilet seal, walls, floors?

They are built in sections ("modules") in a factory in controlled conditions (no rain, sleet, wind, sun, etc.).

Finally, I met with him in person, saw the property and it is in great condition.

You will be looking at recognizing the increase now as opposed to later.