We spent a little more then usual because we wanted the finished product to be hi quality and we spent on nicer finishes, design and staging.

I also find myself in this predicament but I will tell you that I wouldn't recommend essentially buying sight unseen, and if you put in an offer most LA's if they accept it will allow you to "view the property" I would just make sure you have some outs like if you find the property is in dire need of repairs and then the tenant leaves you may find yourself with an expensive rehab.

The property will be paid with by residential lending products and personal money, but how is the business part of this plan be established (i.e., creating a legal contract for rent/finding tenants)? 

Meaning you rent out some of the rooms or apartments and essentially live for free while investing the delta.

He is coming in with the down payment but doesn't want his name on the loan so I am essentially raising the funds with the promise of the equity split when we do a cash out refi.

This is essentially locking them into the sale, in the future. 

Commercial loan products that just underwrite the property and not the borrower.

Essentially, we're not farmers and have no desire to spend all day in the field.

My goal is to accumulate cash flow over these next 13-14 years, which I would essentially consider "off-limits" until the day I walk off my last ship. 

I have 2 homes in a VA loan and am looking to sell my first home into a LLC that I establish to essentially do a cash out refi.