He seems like a hot-head, so I would be ready for either damage or his refusal to leave.  

Utility Expense includes electric to common areas and water to the 4-unit.

City water/sewer is a good start.

Looking at investments from the maintenance side of the equation once you own it,  I believe a 3 bedroom, 2 bath one story home on a slab foundation connected to public water and sewer is the perfect rental for buy and holds.  

IMO, FICO scores are so generic that while you can filter out, you may also be throwing the baby out with the water - - missing tenants that are just recovering from messy lives.Before pulling a CR/BG report, I vet the previous landlords, employment and income, thus saving expense for a non-starter.Then, the CR (if you get a real one from Trans Union/Experion) will have all the accounts and their payment histories.  

If we had the highest water costs for example, those are variable and you can manage that better.

It has new a/c unit, water heater, and kitchen.

The analysis I advised would tend to agree and point to flip (shorter holding period) as plan A in hot markets.

We currently looking at Memphis, seems like a hot spot for cash flow homes, and an area that is within our budget.Our current questions are about forming a Partnership, or a LLC, and what tax implications there will be.This is all a new venture for me, so I'm soaking up a lot of information, and would love to know more!

I am a chemical engineer in the water treatment community and am currently serving in the Army as an officer.