-I really like modular because we will be building several of these communities, that is the plan anyway, and it will be dead simple for future comps because we can literally point to the exact same home / community design.

Atleast in my market its usually found on 3/4 units or 2 units that are value add projects.

Negotiating, funding, and doing project management and some of the handyman type work.

I would get at least 2-3 quotes on projects before you commit to it.

Look at the cost to talk with them as an investment in your future. 

If it is under 1% then we use 1.25% in our projections.

Every few years, when the property is turned, they move to their next future rental and backfill themselves with a tenant. 

I'm not confident in buying those and if I fail on my first attempt, I may not be able to continue confidently in the future.

It sounds like he is trying to do too many projects and does not have any money to get another one going. 

If the seller files bankruptcy in the future you have to prove to the court that you bought the house fairly.