If they're good, great: you'll have some lenience and goodwill for a long-term partnership!

A little goodwill goes a long way to foster healthy business relationships.

They remained unyielding in their stance.After their decision, in goodwill, I offered to show them my roommate agreements for 12 months terms (which I did), terminated my roommate's agreement as they requested (which I did) and even proposed selling my condo (currently for sale).

Because you both are 50/50 and they put up money and you are performing good will by managing, you both should split the expense.

If you can knock out some exterior upgrades prior to the rental increases that will go a long way to goodwill.

([furniture] rent to deliver, then pay off)Natures CountertopsGeorgia Carpet Outlet (GCO)Gabriel Brothers (household items/ furniture/ bedding/ lighting….)Goodwill (best artwork stock in town)Mon Valley Habitat for humanityI also decorate myself. 

When "deals are good" will interest rates still be 4.5%-5%? 

. -- You shouldn't have to live on Ramon Noodles and clothes from Goodwill so that you can afford repairs when things breakdown.Many of the investors who are posting advice like that are probably not making much at their day job and hence suggest that you live a humble life for the sake of building up your next egg of rental properties.  -- Which is fine too if you are in that position.Retiring before 65 with a few paid off rental buildings is the way to go (you can still manage them for monthly income or sell the buildings and add the proceeds to your retirement fund).Good luck,John

Do you really think that someone like Habitat or Goodwill or one of those will take it as a donation?  

It depends on how soon or eagerly you want to get started in real estate investing; and what your future return, or how good will you do in future investing.