I was under the impression that when you pool together investors on a syndicated deal, you have essentially created a security. 

The equity will essentially be paid back to her in monthly installments.

Essentially they are performing their duty and operating as designed.Garbage disposals are notorious for breaking.

I think the "evaluate this deal" posts should continue as a core element of the forums because the whole appeal of real estate as an investment is that each property is a little different.  

The cap rate is 10% (you're earning 10% annually on your investment).So, if your target is to buy at a 10-cap: If the NOI is $15k...now the property is worth $150k to you.If the NOI is $7,500....now the property is worth $75k to you.This is essentially how cap rate determines price when using the income approach to value properties.

She did put in a lot of work on the project and I guess I am not opposed to paying for that, just how much that is has been bothering me, because any amount he comes up with is fine because essentially whatever fee we pay her goes to him anyway.

Essentially if you are living there you have a say in picking your neighbor which you don't in an apartment. 

Your way is essentially at $170k with $14k down.I like Bill's idea of an LOi.

So, does anyone have any suggestions on how I can fairly structure this deal so that:1) I can pay the asking price as a lump sum to my grandfather at closing (seller financing doesn't seem fair in this situation and could get hairy, considering my grandfather is 85 and many of the seller financing deals are for 30 years.)2) I could hold on to the money that I have set aside to invest in my first multi-family place (essentially I would like to put low or no money down on this deal, maybe Brandon's book could help!)

I would not suggest running your first project any further away then an hour.  6 - If you are trying to flip out of state with a partner you are essentially becoming an equity partner/ lender.