I like this idea as a theory but is there an ultra conservative compromise, say 50% LTV?

This is an excellent compromise.

Not sure why you had such a big impact, did you check nothing else went on to contribute, cards compromised?

Never compromise on cash flow and don’t bank on appreciation.

It actually turned out they had genuine issues with their bank accounts being compromised.

This is not meant as a punishment but a compromise to alleviate any ongoing issues caused by shared parking situations.

That 8% rate was friends & family a couple years ago -- these days, there are plenty of high-net-worth individuals who are happy to lend at that rate (or just a bit higher) for a relatively secure return with an experienced/successful rehabber.You will most certainly be able to find rehabbers willing to do a 50/50 split -- and maybe even better -- but, these days, those are typically going to be the newer investors who present greater risk, will require more due diligence and will need more oversight and hand-holding to ensure you get your money back.In my experience, hard money lenders are hurting for business these days -- I know plenty of HMLs who are sitting on a lot of cash and are willing to compromise on rates to work with more experienced investors. 

Now their numbers are incorrect.In either event, the value of your mathematical comparison is compromised.

My experience makes me believe that most of the real hard-line, no exceptions types on BP do not have a whole lot of high level business experience, and so they get their conception of what "business-like" means from a combination of stereotype and wishful thinking.Frankly, I think the reason you don't want other landlords to compromise is that when your competition compromises, it makes it harder for you to hold a hard line.I would rather work with good tenants who experience one of life's little bumps than deal with a vacancy.

Easy to spend $15,000 to $25,000 on legal fees on each side and how the matter will come out is essentially a crap shoot.So, compromise and work something out.