Is it the 10% return they are interested in or the $10,000 minimum cash-on-cash realized  ("they want $110,000 back..")?  

Its important to realize however that just the mortgage payment alone can be no more than 46.99% of your total monthly gross income of 5k Plus the rental income (minus 15-25% factor depending on area).Depending on what the other unit rents for you may be able to qualify.I hope this helped.

I realized that they all have something unique (and sometimes not unique which just pounds the message home) So I have notebooks for each of the Strategies that I take notes in.

For whatever reason I didn't have the realization I'm his private money lender without either one of us using that term. 

I realize you are not in the same area and don't know the geography of the location but I guess what I'm saying is, given the ROI and price, and being my first investment property, would this be a good idea.

It is important for out-of-area buyers to realize how important it is to take control of the process and ask for those things.  

We have been reading what we can on the subject and realize that our networking for our knowledge is the best way to get the most out of our time.We have been reading and talking and reading some more.

Appreciation for a property is an unknown and may only be realized when a property is refinanced or sold.

Are you talking about putting a deposit down on the home to be built, having them build it out, and then keeping for a rental, hoping to realize appreciation over the next year or so? 

As you start to break it down you realize how trivial a percentage can be and this why an inspection becomes your best friend and contingency with your offers.