I don't foresee a problem getting out of the hard money loan, my concern is rather on the final interest rate I'll get on the 30Y mortgage (4.75?

I wanted to purchase a small commercial office building and was rejected and loan officer suggested they were concerned about what to do about current properties because of my age.

The goal is, or should be to secure income, so if the concern before you even rent is that you might have to evict a tenant, the focus should be on screening and qualifying potential tenants so as to try to minimize, as much as possible, the probability of renting to a troublesome tenant in the first place.

This might not be high for your area and might not be a concern.$625 might be pretty cheap for your area, which could mean you have opportunity to improve / raise rent, but it also might mean you are dealing with a tenant population that is a bit tougher to manage.

As far as the state taxes are concerned, you may not have to file a nonresident state income tax return if you had no income and no refund is due.  

Are these dangerous waters to wade through?

a misunderstanding cost me one month of headaches for me, tenant and i have one abatement (hud not paying rent to owner because of list of repairs not taken care of) on my record. sometime the inspectors let you do small repairs/adjustments on the fly. understand that the vast majority of inspectors are not there to "get you": are there to make sure there is no danger/slumlording happening.

I'm a hustler so hard work does not concern me at all, however, I do prefer to have a strategy and man with this wholesale business there seems to be no right or wrong way to do it.

Any major factors here to be concerned with as I model this?

You are in the business of making money and should be concerned, at least, by anything that may pose a threat to that ability.