However, I live close-by (30 minute drive), recently retired from my day-job, and if the loan is not too large, I might be willing to do a deal just to learn a bit more about another side of RE.  

Focus on learning how they generate leads, negotiate deals, and close transactions.

I have a soft heart for those who deal with these struggles, it felt like a meaningful way to combine doing good with smart investing. 

Namely, that if a tenant (in this case accompanied by a whole family) ends up stop paying rent and I would be on the hook for both covering the mortgage and dealing with open ended legal costs and time.

Does not need to be perfectly soundproof but if it as bad as you allude to then you need to deal with it as soon as possible.

Quote from @Jay Hinrichs: Quote from @Engelo Rumora: @David KanarekI don't think I have ever seen better investigative research than this.Hat's off to you and sorry for your troubles and everyone else's.Please don't investigate me haha Engelo as someone that has taken this kind of abuse on BP and SM  and lived to fight another day I think you understand better than most investors mind set and how they feel or attack if their deal does not go right.  

How much cash have you put into the deal so far?

I do / done many rent to own (contract for deed) and a few seller finananced deals where I keep the note.Why not in parallel use a flat fee listing on MLS too?   

Are they currently investing in deals and building in this market.3.

Is there a reason you aren't willing to do your own diligence and invest on your own and choose to knowingly take a worse deal through a TK provider?