The scenario where you use a conventional style mortgage makes the most sense in your shoes.

In your shoes, if you are using a low using a low down payment loan then there probably won't be enough equity left to sell or refinance so your only option is to hold.

Personally if in your shoes I would rather make him an equity partner vs fee based, or pay on performance such as 10% of rents collected, something that is win-win and loose-loose based.

BTW, nice touch on the lapel rose.

They have the full strength of the Govt behind them, and they will wear you down, put you off, delay you, and make you want to eat your shoes after walking thru a cow pasture vs. deal with them.I have heard some folks says they do okay with Section 8, and that is all depends on the local director. 

If you look at the data, in the last 5 recessions, home prices rose in 3, was basically neutral in 1 (~1.5% decline), and we all know about 2008. 

For anyone in my shoes would you take it to small claims or collection agency?

Any advice for someone in my shoes?

I'm im your shoes and buy turnkey properties that don't need much work.

However if I were in the other people's shoes I don't see wanting to give you a no-payments loan for $200k for a year and a half, and only making 4% on that money for 5 years unless all the co heirs are independently wealthy (possible but seems unlikely).