I get the $400 for an appraisal but shouldn't my best friend who is asking 10k for his assignment fee be the one to determine the earnest money or is it the original seller, certainly not my lender am I correct?

That should determine your next move.

Maybe I should propose to do a Lease contract for the two properties from them for whatever their PITI is plus a certain premium, with the provision that I can sub-lease the units at my discretion and am responsible for any and all maintenance and repairs, with a secondary Option contract stating that upon satisfactory completion of the 60-month Lease contract I will have the option to purchase at the pre-determined price.I'm very new to all this, Michael, what do you think?

Determine each term's amount that is most advantageous to you (that you think that you can sell), and your limit, before the meeting.

I also haven't yet done enough research to determine where I would ideally like to start investing.

     ( determine if we are both on the same page )2.)  

(http://www.zillow.com/research/data/)Zillow really can't help you determine value.  

How should I determine the overall value?  

You will only really be able to determine if it's 'the one' after you go inside and can have a solid rehab cost.

What determines the success or failure of your choice is luck, your level of understanding, and your passion for it.If real estate is a goal simply to diversify, it doesn't have to be a primary business for you.