All the big dog flippers say not to let emotion get involved.

I am alittle upset that I have to go this route but I am emotionally invested at this point so I am going for it.

Not emotional - just as an investment.

Both fiscally and emotionally that can be tough to stomach. 

There are tons of emotional and social impacts.

It's that and / or the wife responding to me is taking the idea of charges personally and is reacting emotionally. 

There's also the fact that if during the deal divorce comes up, might affect your friend emotionally and financially which might just blow the deal. 

Other than the emotionally uncomfortable experience you told us that you encountered during their entire process, you don't seem to have nailed down real specific ssues that you can caution someone to beware of.

Landlord has long history of unethical practices towards different tenants and causing intense emotional distress to evict tenant or backed away from agreement, possibly to position himself to get better mortgage rates (so he can make appropriate changes to properties). 

Everything is how are emotions see it.