As far as buying, tearing down and reselling the lots, you have to evaluate each deal on it's own merits.

This type of loan would certainly be substantially different and it merits a hard look at whether or not the math supports the investment. 

So there is some merit to your plan to raise rent and hope they move out voluntarily before it gets to that point.Just so you know, you're actually only legally required to give a 30 day notice for a 10% rent increase. 

The investor should be able to evaluate the deal on its own merits, regardless of who the sponsor is, and only invest if he/she definitely likes the deal.

Go in with your eyes wide open.Turnkeys no longer fit my investing goals, but that doesn't mean that they don't have any merit. 

~A bunch of "Gurus"Great quote, it does have it's merits, and I tend to agree with the sentiment, but it really depends, what are your goals?

I think all 3 options have merit.

I think as long as you are judging wanting them on your team based on merit, rather than relationships, then you're ok.

If so, I would very strongly consider the merit of taking on $300k in debt in order to achieve this level of earning potential and perhaps explore cheaper ways of attaining this education.Rather than thinking about how you can mitigate a poor financial decision through real estate, I respectfully suggest that perhaps it's better to not make the poor financial decision in the first place.  

A frivolous lawsuit is by definition a lawsuit that has no merit.