That seems very low.

Maybe the "classification" isn't the important piece - but can I write off expenses if I occupy a property more than 14 days?

Less expenses: Stop going out to eat so much, trade your car for a cheaper one, sell the $5000 golf clubs for $1000 ones, 1 vacation a year instead of 2 or 3 a year because "I deserve it", cut the grass yourself.I am being a little silly, but seriously get on a budget and see what you need to do to cut expenses or where you can work a little harder.

It's only a matter of time before a minor financial emergency pops up for them and you'll have the time, energy and expense of an eviction on your hands. 

Hi Jeffrey, horrendously expensive for what it is.

Obviously I’m in Canada so would need a property management company so that would add to the expenses, but I don’t know, something feels right about an investment like this.

So initially I proposed only a 5 year increase knowing that I did not want to have a 10 year lease with rent so low especially if I go to sell the building - it would be an unattractive investment.The new partner proposed to have no increase in the first year, then $50 after every year for the remaining 10 years. 

This is going to affect your purchase price, turnover ratio, maintenance expenses, etc. it also may impact your exit strategy when it’s time to sell the property. 

This feels like I have been advised to start an avalanche of yearly expenses , additional paperwork etc. ! 

HOA fees for a condo can be expensive that hurt your bottom line.