Also, should we have a contract that covers these roles and expectations and mitigates any unforeseen risks?

@Juan RosadoShort of being able to negotiate the price much lower and/or significantly raise the rents, this deal is way too thin and could easily be derailed with a couple unforeseen or untimely expenses.If you yourself are having second thoughts at this point, paired with the projections you've provided here, is certainly enough to convince me that you're better to move on from this deal.

Stay patient - lots of unforeseen roadblocks will present themselves.

Stay patient - lots of unforeseen roadblocks will present themselves.

We budgeted around $100k for the renovations and but unforeseen things and higher end finishes put us up in the $160k range.

Its a great resource for meeting tons of great RE investors, I am a newbie and the only pointer I would give you is to have sufficient reserves to deal with any repairs, capex and any unforeseen issues that may occur.

Simply that - market corrections, development not getting completed, some other unforeseen circumstance that inhibits or prevents appreciation the way you may expect (like, for example, another hurricane!).  

Not enough meat on the bone to account for any hiccups, going over budget, unforeseen issues with the property.

If I were to repair/upgrade for rental purposes i am estimating about a $15,000 expenditure, let's call it $25,000 due to unforeseen items that will definitely pop up. 

I know there will always be unforeseen issues when dealing with real estate, especially on your first few deals.