Before you commit to the condo/duplex idea I would have your agent dig into the neighborhood comparables a little more and see if half duplexes are selling for what you want.Duplexes will rent all day long, but selling half of a duplex is a different game.  

You are proposing you commit fraud - and on a public forum.  

That way if things aren't working out but there's no technical breach of lease, you can just give a notice to vacate rather than be committed to a housemate you don't want for a full year.

I can commit ~10 hours of my time a week to this.

I can commit ~10 hours of my time a week to this.

I don't know you, your personality, how you like to work, e.g. alone, with groups, teams, etc. so what I think may not apply to you, but since no one else has answered I will.I am VERY hesitant to join into a long term financial commitment with someone I do not know very well. 

The only thing that I do not like is that he does not have a projected IRR and wants us to commit to an amount before we receive this projected IRR.

If violations have occurred, seek legal counsel.As this is a forum for investments and not necessarily legal remedies for tenant violations which you have committed, you'd be best to speak with a local attorney who specializes in such matters. 

If they have anti-social disorder, especially if they have committed sex-offences no one wants them, and they might have other felonies as well.The non-crazy SSDI recipients fare better; they can get along with a room-mate and since they are more sympathetic, they'll probably have better luck finding subsidized housing. 

@Maurice Smith awesome drive and commitment!