The rosy pro-formas touting above market rents to last forever year after year is a loser as it is not sustainable.

There are a lot of factors that will come into play when the IRS considers whether someone is an employee or a contractor, and "who purchases the materials" is just one of them. 

Agree on how the 1st $10k will be spent.figure out if this is going to be a business that will least until one partner reaches a goal or for forever. 

That'll help you factor any foreseeable repairs into your budget. 

I believe I understand what the commenters are saying - don't factor in your living expenses because that may make a deal look more attractive, and you may pay more than you need to on a house...

The most important factor not volunteered in your question is: Do you or your partner have other assets of value?

There are two factors at play here. 

All I can think about is the "hassle factor" associated with having to furnish a property from another country. 

What are the risks and based on the numbers and other factors (described above), should I even do this project?

Do you think this factor can be a deal breaker when I am searching for potential rental properties?