Unrealistic expectations. 1-2 calls per 100 pieces of mail would be a good response for someone fairly new to direct mail marketing.

We will have a fair amount tied up in renovations when we are done, somewhere in the ball park or $65k, we only paid $35k for it though.

When you market a home with a particular amenity, you have a moral obligation to ensure that amenity is maintained. it doesn't matter if you told them the tub worked or not; they saw it and assumed it works so you should ensure the home matches what was presented.If you don't intend to maintain the tub, be sure to disclose that to future renters.

My involvement would become worthless.If the investor stays off the note but gets 6% + 50/50 of the remaining profits than it would be fair. 

If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff. 6.

Matthew 5:7   Your $650 rent doesn't have anything to do with betraying, it is a fair trade for the service that you provide. 

Also I'd use an attorney to draft such agreement to ensure it is properly written. 

They are 95% legal in Texas...if you can comply.A pure option OR a pure lease is fair game, regardless of who is getting the benefit.If you are *getting* the LO (and not a consumer), game on. 

Be honest with yourself that you're betting on price appreciation and hedging against inflation because the neighborhoods with a large share of 30-somethings renting or owning in it that are fairly safe are going to be about break-even with rent prices at best.

Starting your story with "tenant who is mexican" probably isn't going to earn you much sympathy - there's a concept called Fair Housing....