They are not your legal counsel and cannot act as such.This type of joint venturing with yourself is promoted by some as safe and clean.  

The numbers are fair in my opinion but I would structure it as a secured loan and a joint venture agreement(two separate agreements).

Pragmatically what happens is you expand the Fannie cap to 20 by putting each property/loan only in one spouses name (we can thank feminism for that, once upon a time women didn't have individual credit, only EITHER joint with their dad or joint with their husband).

If all the obvious ideas don't work, then you simply form a joint venture with your landlord to get coverage.

@Dominique WilsonI am not sure where you read that you have to have the property for one year in order to avoid capital gain tax.If the property is your personal residence and you owned and lived in the property for 2 out of 5 years you may be eligible to sell the property and avoid tax on $250,000 of capital gain($500,000 if married joint).Furthermore, is the $20,000 of equity that you mention the 20% down that you put?

After 10 years:OZ is worth $110,462 at 1%/yearNon-OZ is worth $134,391 at 3%/yearLet's say you ended up falling in the 15% bracket:OZ profit is $10,462Non-OZ profit is $29,232 after taxes.And don't forget under current tax law you don't pay CG on the first $38k anyway ($77k if filing jointly). 

My friend and I are starting a joint venture in Pigeon Forge, Tennessee.

Here is an article I would encourage you to read on Joint Ventures.Option 1: Traditional LLCFor this situation I would recommend setting up a regular LLC for this property.

Tenants in Common, Joint Tenants, Self, LLC, Corporation? 

So I am a joint owner of a rental property with my siblings that we inherited when our mother passed.