I’ve learned that sometimes in order to get what you want, you need to play the firm ***** card and hold people accountable to their word.  

If you plan to play the role of the 'hands off' money guy, I think you can get away with not being at the property, but I would not recommend it. 

.$10,000 can barely cover the cost of a $100,000 real estate purchase assuming 3.5% down and another $6,500 that goes towards closing costs and 6 months of reserve that the bank will require.I would consider saving up another $10,000 before considering a real estate purchase, atleast this way you would have more playing room with what you can buy and having more contingency funds.

Here is where my question comes into play.

I might roll with option 1 but have in the lease if the city issues another fine option 2 is in play.  

Windows--repair, replacement, etc--are on me. lol.I'm going to nag about replacing those dead trees in fall and I'm also going to see when we have it in the budget to refurbish the basketball court a little bit, and talk to the investors and see if they want to light it since right now, tenants have commandeered a light meant for illuminating the entry sign to shine onto the basketball court, and it's well located such that people playing after dark won't disturb people in the units.....

You play therapist and marketer more than anything.

I would reiterate the point Nathan made in regard to developing a plan to have capital in the deal, no money down or tying up all of your money up in equity is typically not a good play.

Understand that it may be difficult for the tenants to find replacement housing, and especially with government subsidies playing a role, you may allow them a longer-than-average time to find new housing. 

@Steve Adler a lot of variables at play here man, and to be honest I'm probably not the most suitable person to be giving such major life advice, but a couple things do come to mind.