The landlords didnt provide walls painted with marks or drawings on it. 

The rate will be high but you won't have to provide any income documentation or leases. 

Did you ask what about the inspection caused their last deal to fall through and whether they have a copy of the inspection they could provide to you?

Consider semi-furnishing the space to increase room rental costs and also contact your local university/college housing department, they typically provide students with resources for off-campus housing and you could plug yourself in there. 

Obviously the most important thing is that you feel comfortable with the situation 

You'd have to provide more details for anyone to give you a helpful answer.

- 3 units are occupied by seller’s close family - All units are on month to month basis- All units are significantly under market rent- 1 unit pays on the 15th of the month- 1 unit has not yet paid for Match 1st even though my information has been provided to them twice- I have no applications or old leases1.

It all depends on your goals and your comfort level.

Then I would identify what type of real estate you want to go into, and that you feel comfortable with.

Look for better deals to provide latitude to deal with unforeseen issues.