There is a breakeven point where you can charge almost as much money for less people and thereby reduce your risk/hassles/cleaning/damages/parties/EtcYou just gotta figure out what that is for your area.... 

The issue that I am running into is that conventional loans require around 20% down and we will not qualify for a FHA loan that has a reduced down payment.

Reducing spending on eating out and buying a good car (nothing fancy) that is reliable and lasts helps a lot.  

Rather than having different partnerships for each asset, the holding comp will reduce the tax compliance fees by eliminating the need for tax returns for all the underlying entities that are 100% owned by the holding partnership. 

It can create stress in relationships, I would rather avoid.

Your payment history will remain on your credit report and your debt is reduced. 

My goal with owner carry was to be able to refinance at the end of the term of the agreement in order to reduce out-of-pocket costs.

If it has not been altered, you are fine.It seems the “steal” is based on a deeply reduced price due to the unique situation and the home will always be worth substantially less than the surrounding homes due to the sub-grade bedrooms.  

It's frustrating what is already a pretty high stress activity.How are the rest of ya'll getting on?

Therefore, there is good reason for a CPA/tax professional to adjust the value of the items and reduce the amount of recapture anyway.