You have the ability to provide for yourself in terms of housing, transportation, food, clothing, utilities, entertainment and more because of your employment.  

Thanks everyone for the interest/advice.He gave me access to his profit & loss numbers for these buildings and everything seems to cash flow well.

That's obviously better than the loss at 10%, but those are numbers you will have to come up with. 

You count this regardless of if you self-managePrinciple + Interest + taxes is $1,066 = $12,792 annual$100 * 12 = $1,200 for water$19,200 - $22,680 = ($3,480) annually, a loss of cash.OTHER CONSIDERATIONS:Depreciation will be $200,000/27.5 years = $7,273. 

No property damage coverage - which means I have the risk of losses in case of any damages.

I originally got their address through the tax records of the property so I am kind of at a loss where to go from here. 

I think I'd pull the trigger on this property too.In my opinion you've got enough slop in the cash flow to justify the purchase even if you're repair numbers aren't exact.A couple pieces of food for your frontal cortex:-Have you verified it's not in a flood plane?  

Income/Loss statements for tax purposes take less than a min at the end of the year provided you have performed your book keeping/accounting correctly.

If you see a loss in profit because of it, don't take it.

This is not a deal of any kind for you.....you need to gracefully back out, like "sorry man, I can't get involved in something like that" sounds like he's wanting you to write a $50,000 check for his loss.