Would you have any recommendations on how to structure this private money loan that makes sense for the lender?  

Keep it simple versus some of the esoteric structures being pushed.  

Agree with @Chris Seveney- people LOVE making their ownership structures so complicated when you can mitigate risk in so many simpler ways. 

Buy and rent a minor fix property, nothing structural.  

Avoid lenders that want to escrow your payments at closing, this increases your cash to close drastically and, in my opinion, is not the best structure even for new investors.

Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.

ADUs implies there is a residential building to be an accessory to, but inn my market the accessories can be overwhelming to the primary structure.  

Being new to a partnership like this, I would love to hear everyone's thoughts on a fair way to structure the partnership? 

Where if we use our own personal funds (not funds acquired from our spouses or from our marriages) our business would be strictly ours and our spouses have no claim to it should one of us ever divorce from our spouse. 2) Invest with my husband using the equity from our home but I want to have a business structure that is separate from the marriage where we are both partners and we are paid for our individual contributions to the business.What type of business partnership could I have with my husband that can be setup in that way?

So you are doing construction in your yard, but not directly connected to the existing structure the tenant lives in and they are already complaining?