I imagine there are a lot of 3/2 that probably sleep 8-10 and if you can offer a slightly larger bed count and a cool game room/theme room you can differentiate yourself a bit from your competition and get some extra revenue through slightly higher rate (extra person fees, etc) as well as an overall higher occupancy. 

Personally, I would be hesitant to jump into a deal when the existing partners are cash-strapped.

In the competitive landscape for real estate investor websites, the truth is low-cost SEO isn't going to get you deals that make you money. 

The way I heard it explained is that you take over the existing mortgage and then you can either rent it or transfer the mortgage to someone for free but the videos I’ve watched never say anything about giving the seller anything other than money down to lock it up.

Id guess a current appraisal would be somewhere 150-170k depending on how nice the units are cleaned up.I know I am not factoring in appreciation, the plan was to purchase in cash have decent cash flow as a better means to invest money that was not doing much.

You will need 20-25% down and a commercial loan for the rest.Most lenders will want to lend to an LLC with you personally guaranteeing the loan.Typically, each MFR would be purchased under its own LLC, for liability purposes.Each LLC would then also need its own bank accounts for collecting rents and paying expenses.

Using someone else's money is always better, that using your own. 

Regular reconciliation of accounts and maintaining a clear separation between personal and business finances is crucial.

If it’s worth more you owe him that much money to “buy it” if you really want to keep it “win-win”2) HOW IN THE WORLD!  

Thus, I ensure to vet the deal to forecast the best (or worst) possible outcome for the borrower and a private money lender.