Essentially, you want the property to pay for itself, including the mortgage.

Assuming that you're accounting for ALL expenses including vacancy, maintenance, CapEx, insurance, etc., then that is still a low return from the cash flow side of things. 

Take a photo of him with your phone to include in the letter. 

Renting out rooms is fine, there are laws that permit how many people can live under 1 dwelling but if its 1 person per room it should be fine as long as room has Windows and a closet..If you're planning to do Airbnb NYC has new requirements that will take affect soon..Also keep in mind when renting out rooms in some markets Utilities are included in rent..

In addition, employer contributions may be withdrawn upon the occurrence of any of the following events:1) The occurrence of a Hardship,2) The attainment of age 59 ½3) The employer contributions being withdrawn have been accumulated in the solo 401k plan for at least 2 years; or4) The participant has participated in the solo 401k plan for at least 5 years.Salary Deferrals(employee contributions): Any employee contribution (including any earnings on such amounts)may not be distributed prior to the solo 401k participant’s severance from employment, death, or disability.

It's past time they started dipping. are you kidding me..  1 million for 500 sq ft.. and that includes kitchen bath and murphy bed.. 

Try to include pictures and other evidence to support your claim.

Get good properties in good areas and get a good screening process in place.Other risks, include regulatory risks which I think are in proportion to the size/scope of projects you take on (if you're fixing up houses lets say before renting them).Other risks include common maintenance items. 

You did not include anything for CapEx.  

Amend the lease to include that all dogs must be on a leash if outdoors.