Due to IRA rules money you borrow to buy real estate held in an IRA gets an extra Tax (UDFT/UBIT)  This tax essentially negates the advantage of the tax deferment on that income. 

Don't borrow more than you need.

Her revolving credit balance is low, so she isn't a big borrower/spender.

As long as you can borrow the money, I'd use it as seed money to buy more places.

Investors can look at the types of loans being given, weather the property is used a primary residence or investment, and the demographic information of the borrower.

If a borrower gets into financial trouble because they went hard money that's their fault not the lender's. 

Since you own it outright, you could borrow against it for future endeavors though.

Can somebody please advise  what are generic financial terms for private lending(residential).Like loan rate, what happens when loan matured and borrower wants few more months extension.Thanks in advance.

The terms of the contract are rarely enforced if the borrower or renter defaults. 

You're not trying to scam the borrowers?