Instead I would calculate what the average utility costs will be, build that price into the lease agreement and include a separate clause stating that if the tenant goes over the allowable cost built into the lease for utilities then they would be responsible for the additional cost.

If your partner drafts a response to California or mentions to California that he will have representation to fight the letter - the state will give approximately 30-90 days  and put any liens in hold and not seize anything.What the state can and will levy will depend on the amount.I would have to assume that the state will try to levy something more liquid first before they do anything with the partnership interest.

I also want actual names on the agreement of ppl who will live there and will be responsible for the rental.I know they can tell me to kick rocks and not give me ish' but they seem really motivated to sell so what else can I ask for to vet the current tenants, get more information on them or something to make this a little more secure for me?

All of the third party providers involved in the transaction have the responsibility of making known any part of the transaction that has been misrepresented once the misrepresentation becomes known to them. 

Hey Vincent,Having your license does give you more rapport, since the thought of a real estate agent's fiduciary responsibility follows a license.

Agreed with all other responses... red flag for sure, NDA should solve the issue.

Thank you all for these really helpful responses.

Joe,I really hope you get some good responses here with how specific portfolios have performed over time.I can tell you that the type of property you purchase, the location of the property, the amount of rent paid by the resident and probably most importantly, the quality and level of renovation are going to have a major impact on performance over time.   

Thank you Lane, Jasmine and Dean for your responses.

The renters have been just a couple for majority of the time , very good responsible renters , so the house has minimal impact.