I would find a way to eat more of the cost and maybe go with a Experienced Contractor for some of the work.      

If your employer was angry at you for building a safety net and nest egg for your family - maybe they weren't the right employer for you.

Do you eat out?

Failure to oversee borrower's construction projects can create additional waste and eat your profit margin.A variation on private lending is to lend capital to local hard money lenders or loan brokers.

@Colby FryaWatch out for those holding costs. 9 months of HML could eat your profit margin.

Oftentimes, when it comes to hotel units, the fees and expenses eat up a lot of the profits. 

I'm not a financial advisor, I just play one on TV, nor am I a securities attorney, and I don't know a great deal about your specific goals or situation, but I would not put all your eggs in one basket to start. 

And I will echo what the others here have said...Acquisition costs, rehab costs, holding costs, and selling costs are going to eat up your margins on this.

IF they did all the work, put in the effort, and showed proof that they were out of pocket and not getting $ back from processor, I would maybe split it with them 50/50 but not a snowballs chance in hell I would eat the expense for their screw-up with their payment processor on a tenant they placed, no way.

When you buy 2-3 properties at once, and next year the market is crashing or you find a great deal you can not just sell them, because closing cost eat all your profit.