From my perspective, it’s essential to ensure that financing aligns with your long-term goals and risk tolerance.

No one wants to put in the effort, work, time and money, into a healthy habit or - for real estate - into a solid asset.

In this instance what I would do is get the deed in lieu from the borrower so you ahve the property again and get a note from them but have an attorney draft it to see if you can include a confession of judgment - meaning if they do not pay then you can get a quick judgment and possibly garnish wages.I would also have them put a small down payment as part of the note and only accept a check that way if you ever did garnish you have a copy of a check so you know where they bank.unfortunately you are right they can stop paying on the note and its unsecured so its a risk but out of all the options this is your best option. 

I do like to dream big and put out those vibes into the quantum field.

@Nate WilliamsWith one income, two kids, and limited cash flow, minimizing risk is key.

There is always a risk in everything.

But never allow someone to buy a lot and put a Pink trailer on it.  

So, put simply, Fannie and Freddie facilitate financing/liquidity to this market, focusing predominately on single-family mortgages and multifamily construction.

You're talking about putting 50% down and then a 6.5% interest rate? 

Yes this leaves more money in the deal but it reduces my risk and ensures I can remain profitable in a down market.