I also don't like on-the-wall toilet paper holders. 

Things to think about:Transient occupancy taxes, inspection fees, business licensing fee, etcUtility costs, which will be much higher than average bc people use your property like a hotelLaundry costsConsumables (tp, paper towels, shampoo, soap, dish detergent, sponges, cleaning supplies, etc)

I literally sat down with a piece of paper and figured out I would need 16 houses with 250 per month cash flow to reach my goal. 

Once they present me the tenant, he/she looks great on paper.

They just send a typed out paper like this:ARV 100KApprox.

Thanks @Andrew Postell, I was getting that feeling. you read it correctly, but It sounded better in my head than on paper.

(Nothing in paper work that says I can’t though) Now I probably sound like a softy saying I’d rather be nice to them and hold off on a refi, so what are my other options?

One may be seduced by some rougher areas where on paper that looks like it can be achieved however many times one finds themselves in a situation where the term "looks good on paper" becomes more of a big disappointment.24% annualized is achievable also albeit getting more difficult in this market but 24% annualized usually means where there is limited cash flow distributions during the hold but the sale yields a high pop at the end annualizing out to 24% over the say 2-5 year hold. 

So, what was offered to me on paper was not what was verbally discussed and Im starting to think my best bet is to walk away from this one.That’s some back story, now here is what I’m looking for help for.

The term "invest" is defined as to expend money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture.