If you want to buy outright or on terms, that can be arranged. 

The tenant got behind on the water bill and finally made arrangements/agreement with Water company to pay a specific amount monthly to bring the account up to date.  

Have them arrange showings on that (likely) weekend at your target properties and throw in another 5-7 that look like potentials.

Why don't you just use your own funds for the down payment, and work out an arrangement with your friend to cover the rehab expenses.

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

As a result the terms/carveouts/covenants were already pre arranged. 

If you make that 2nd arrangement, you must fulfill your end of the agreement each time to build a trust level for future work with the contractor.

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

I believe current laws stipulate the landlord just needs a 15 day notice to end the arrangement, so if it doesn't work out it could turn over fairly quickly, assuming no eviction needed or substantial damage done.