Many people saw this as a weakness when I first started...and to an extent, they were right.

That's a weak deed that can be used to hand over ownership.

I have a similar 1926 Spanish bungalow in LA (3bed 2 bath, 1300sqft, single level), that i just rebuilt completely, so here's my 2 cents1. with plumbing and sewer, make sure that you insect and assess the main drain line form house to street sewer - in houses of that age, they are cast iron and are often buried under a concrete driveway. if it needs to be replaced, make sure re-pavement of driveway is accounted for2. houses of that age have often started as 2bed 1bath and then somewhere along the way been converted to say 3/2 - mine was in the 70's. ask whoever inspecting the foundation to pay attention to the way it's laid out - variation in crawl-space hight, floor joists and different materials used for pillars that house sits on could point to an addition. flat roof over one of the bedrooms or bathrooms in an otherwise house with an attic is another sign it's been added. either way, check with the city that those additions are legal/permitted3. termite damage and dry rot in California and Arizona is a given - in any house, especially that old. as you walk around the rooms, stop in each corner of every room and jump up a few times - if the floor is soft and even a sign of weakness, i bet you you'll have to re-drywall, remove subfloor and repair floor joists in at lest half of that room. just a simple "poking wood for termites" test from the crawl space often misses that. i like my jumping test as well5. size and age of electrical panel - yes, but also age of main electrical wire runs is important. those are usually suspended in crawl spaces or laying on top of ceiling joists in the attic. old wire should be replaced as it's a potential fire-hazard surrounded by all the old fluffy insulation that's in old attics - speaking of fluffy insulation, i hear in some cases it could contain asbestos, so wouldn't hurt to checkfyi, just installed central air in my house and my best estimate - had 7 total - came through Costco at just under $7000 for a 3-ton Lennox system (heat and cool), all new ductwork, permit and inspections. curious as to what your HVAC bid was

Every time I slip back into my old nice and sweet ways I'll get a rude reminder of my weak positioning and it straightens me right back out.

8... lets say he harvest 2 every two months.... that guy is looking at smoking a 1/2lb-1lb (very low ammount for two plants) a month. or more definatly more... but if he's got a stable job, pays his bills, and its legal he could just have a chronic (pardon the pun) pain issue :p

"Your rental history is weak", "you are a student", "your 5 lb chihuahua might tear up my house" etc.

I think the reason you are thinking about the partnership is because you want to focus on your strenghts and hire away the weaknesses.  

Looking for ideas on how to handle the chronic slow payer.  

The first two years were weak and that hurt the value.Apartments plus storage is mixed use.  

I have no idea if your numbers are accurate, but that is a really weak return.