Obviously waiting is not ideal with the mortgage due 09/01 but I don't want to find myself with legal issues either.

Ideally, this will help you decide what direction to go next. 

What would need to happen is your tax pro would need to assist with a 1065 partnership return for both of you (ideally) to ensure its being done right.

Really simple things that should have been easily taken care of by customer service but I could not get them to understand the problem I was encountering and it would take days to get a response.

They often offer more flexible terms and customized interest rates and repayment schedules.

The reverse may be a little less ideal. 

Also you have to constantly look for customers and you competing with highly competitive hard money lenders.Lendng under $50k is great idea because most HML don't do loans less then 100k.So I found that traditional real estate is much more passive and easier but I still be interested in private lending on a deal to deal basis I such deal falls into my inbox and it passes all check and balances. 

But the flexibility of your schedule, no boss or direct customers, and potential for a great year, and realistic expectation that you set make it all doable.   

Renters:A-Class: Ideally 90% or more homeowners.B-Class: 50% homeowners and 50% renters.C-Class: Predominantly renters.Land Value:In A-Class areas, land should be worth rebuilding and upgrading.In B-Class areas, rebuild as-is if the property were destroyed.In C-Class areas, it might be better to sell the land if it’s not cost-effective to rebuild.Crime Rates:Use resources like Trulia.com to gauge crime levels.

Stacking rental houses every two years using the equity built up for the next downpayment each time--ideally with duplexes.Alternatively, they could look at a market like Lansing, MI where you can buy a duplex for around $140,000 where one side pays the expenses including the property manager and the other side is mostly profit.