Though someone on here might give you an answer, if it's wrong, it could be a huge problem for you. 

I know I skipped some of the math such as vacancies, turnover maint, appreciation etc but I wasn't sold on these being the major decision factor (please DO correct me if I'm wrong here)What am I missing? 

It could be there is something major wrong with the house that doesn't show from the curb.

If something goes wrong and you need to evict the tenant for nonpayment, but they own any equity in the property, you can no longer evict them. 

Each state has different laws protecting the rights of tenants and the last thing you want is the wrong advice.

I'm sure there are other ways to do it but weather its right or wrong...

I might be wrong but simple invoices to keep track should be sufficient. 

@Neil G. yes your mortgage broker led you astray.Two issues, he told you to get the wrong kind of insurance.

I really didn’t know about it till now but I am not even sure if they can get renters insurance since they are not US citizens (correct me if I am wrong).

I am new to the game so maybe im looking at it wrong I hope not.