Objective feedback on family loan

[Daniel Dexter]

I would appreciate some objective feedback

I'm looking to take a loan from a close family member...I want to give them a decent return on their investment as you would with any other investor/partner that's fair to both parties. They are offering to front $150k, allowing us to put in a cash offer. I'm confident we can live there (saving us rent elsewhere) and double the value. I was thinking 10-12% compounded monthly..... Realistically I think we could cash out refi in a year. So $15-20k back to them and I'd be out of pocket for repair costs only. 

Thoughts??? What's a typical return for silent partners?