@J Scott seems to imply that anything short of micro managing places the blame at the OP but I do not agree. 

If so you may be implying that you expect expenses like this.  

Most businesses have non-compete clauses, written or implied, and will either demand compensation or terminate those who fail to comply.

In CA if someone stays at a residence for more than 30-days and recieves mail there, they become a tenant, so that implies they have rights even if not listed on a lease. 

This does not imply that a new investor cannot succeed doing out of state but it is more difficult for various reasons the biggest of which is you need to trust others more than you do for a local investment. 

I don't see a huge problem with it being that it is for work completed and it isn't an ongoing gift that implies he's getting a gift for hitting a value.Once, I was at a house in the country, and this guy made BBQ sauce, and he gave me a gallon jar of it.  

In my case the numbers worked better than I am implying in #1.

Let's not imply that commercial loans are truly assumable, if you qualify and pay some fees, they may allow you to assume an existing note.VA loans have been assumable.

Three people I think are most helpful in negotiation and sales are the following:Zig ZiglarTom HopkinsRoger DawsonThe above three can be found on Amazon and get a Kindle $10 a month and really learn sales negotiationMike Terry and Tim Ferry are  real estate agent trainers and they are excellent as far as doing with objectionsAnd I think I'm pretty good at teaching negotiation for sword financing deals or low equity dealsFree video on negotiation http://www.biggerpockets.com/blogs/3/blog_posts/41...

You listed Mortgage Ins - implies you expect to get a conventional loan with less than 20% down; I think you need to research actual financing that might be available before assuming the numbers you did.Expenses related to a loan aren't of concern here for the building's expenses (although the loan debt service will reduce your net cash flow).