Now we are faced with pulling funds from 401K (we are over 59 1/2 - tax but no early withdrawal fee) to cover the down-payment and cost to finance. 

That way you can learn the business and often times teams will help cover your education and start up fees.

The rents should much more than cover the mortgages on the properties with units and you've used the least expensive money to begin to build your empire. 

CAPEX are amounts that you will be setting aside to cover various items that you expect to replace over time (your expected hold period).

We made sure we covered every single basis and worded it as you described above.

Being new to this I am estimating based on numbers I'm seeing from the BP calculators and from other posts I see for these kinds of things, trying to account for all eventualities as a "conservative" estimate hoping that I would have  expenses to cover the unexpected.I also appreciate your advice about managers and using a handyman as a proxy, paid hourly.Account Closed - Definitely not an equity play, just trying to understand how to make these numbers and deals make sense.

You have most things covered.

You can get a cheap residential loan and the other rents should cover your mortgage. 

There maybe a little room to raise rent, but it is unlikely to cover all of it (and that is not accounting for any future expenses, such as capex or maintenance).

There maybe a little room to raise rent, but it is unlikely to cover all of it (and that is not accounting for any future expenses, such as capex or maintenance).