The “buyer beware” philosophy is fine for commercial transactions, but taking “advantage” of home owners when they’re most vulnerable and lack market sophistication is something no right thinking person wants.  

I have no doubt you’ll continue to achieve great success in your investment journey.

There's no doubt you'll find success over time!

Then get inContact with the owner since there is know doubt they are a landlord.

Your personal loan has a 5 year balloon period.  

Courtesy of Dodd Frank, its doubtful the self employed will ever be viewed by lenders as favorable as a w2 employee.

The effort to foreclose, the limits on rates, etc.Maybe a unicorn to find HML that will loan him the necessary money, but I doubt he will find it.  

How do you deal with doubt?

This is the fork where I'm not sure if I'd be good to get some CRE exp and invest in learning about how to review deals for the next 2-3 years, or focus on generating revenue for investment purposes and watch how things are done as a LP.My personality more aligns with networking, reaching out to people, connecting, navigating difficult situations and finding solutions that work.

I doubt they've offered to make you whole on your investment having failed at their primary/only job of due diligence.