If after advertising I failed to get a tenant, I think I'd rather lower the asking price and wait for a tenant with adequate income and no recent evictions.

Go through the what if szenario's and lay out startegies that will lower your exposure.

One way to lower the cost to buyer is to shift this burden and require the seller to convey in fee. 

The returns aren't quite as good as Denver, but they're still good, and the prices are lower in the Springs.And of course, the big reason we like it down there is because the regulatory environment is friendly to Airbnb/VRBO and short-term rentals.

It's just not worth the hassle of dealing in a bad neighborhood with lower-quality tenants.

He also import his own material from China and can use that in his advantage to offer lower than anyone else

If so, then lower your overall price by at least 50 dollars per unit.

I am brand new to real estate so I am looking for a lower risk option that could give me some experience. 

Put the property in your own name with Fannie Mae (or other "traditional" GSE) financing, owner-occupied, at the lower OO rates, and rent the other units.

Nicer place = higher rents and lower turnover.