There is a an 11% combined vacancy issue. 

My biggest concern: the combined income they qualify (3x rent) but individually they don't and a breakup means big time problems collecting rent.  

I know the following:- 20% of rehab costs- Because its a rental property, apparently I can combine both Federal and State tax credits for the Federal Historic Preservation Investment Tax Credit and the State Historic Preservation Commercial Tax credit.- Unsure about which part of the federal HTC application but i'll ask.- Owned by an individual.I'm not sure I fully understand your last part.

I think I'll combine yours and Waynes to include an escalation clause to my maximum and see if that works. 

Is there any particular combination of these routes that would be most ideal?

The bathrooms get a full tile replacement or combination of a new bathtub with a new toilet and vanities.

Rent for a duplex 1/1 and 2/1 is about 1100 and 1300 ( combined rent $2400) .

Carpet is old worn through and has ridges in places etc etc.Purchase price is set at $240,000 depending on what the report looks like I may be lowering the price, or asking for closing costs, or a combination there of.If anyone here has some advice on renegotiating prices after inspections I'd be all ears.Thanks,

Makes me not want to refinance and combine the deeds as one.

@Bob Malecki we've had a combination of i) poor communication, ii) crazy billing (we once had a 45 min charge for reading and replying to a single email - 3 questions that we had explicitly instructed and worded for yes / no answers) iii) lying about who was performing work and what work was performed (they were job shopping our work to an out of state attorney) and iv) poor performance (weeks to subcontract and execute service).