The neighbors got to stay and the HOA got to essentially "keep" the money.

So I will be living in he house and it has the previous tenants still living there and they will be staying there.

You can still find 1%+ properties out there.On to your numbers: I'll say, some people only calculate 5% for vacancy (opposed to your 8%), and your 18% for repairs/maintenance/capx might be a little high (but it all comes down to what you're comfortable with).And remember, everything adds up.

Since I'm inheriting all the risk by funding 100% of the deal, I'm not sure I'm not sure I'm comfortable, but am unsure on what else to have in writing to make it right.In addition to this proposal, I've already purchased 3 lots in New Bern, which was presented me to this same person. 

I understand they have a bad history but if his mum is going guarantor with such a good credit score should that give me the comfort I would expect?

My Loan team is the largest in our area and because of that I am familiar with most the heavy hitter agents and of course quite comfortable with the finance side of things. 

I've kept track over the years and that's what good conservation-minded tenants use to keep the house comfortable.

My involvement would become worthless.If the investor stays off the note but gets 6% + 50/50 of the remaining profits than it would be fair. 

Since I'm inheriting all the risk by funding 100% of the deal, I'm not sure I'm not sure I'm comfortable, but am unsure on what else to have in writing to make it right.In addition to this proposal, I've already purchased 3 lots in New Bern, which was presented me to this same person.

If you are working towards financial independence or to leave your day job, and you're comfortable with the idea of being a landlord, I like the idea of investing the resources to update the house now, and putting in a renter.