The issue is that the current owner is a smoker and smokes inside the residence.

Just remember the code requirements for a bedroom; smoke detector, egress window or door and unfortunately a permit.  

Which would you rather breath in, coal smoke or NG? 

I don’t smoke or use pot but own lots of stock.

Add to this that the stock market returns are not guaranteed and vary dependent on uncontrollable events in companies (think Elon Musk smoking a joint on Joe Rogans podcast causing stock of Tesla to dive).With this being said, I feel that a 8-10% return is more than adequate for personal lending.

I think the contrast between the dark gray and white siding is too much.

Happy to respond.first off 100% LTC are pretty difficult to get and that's what your doing.. not saying it can't be done but the cost for those is usually about 2 to 4 points and 12% interest up to 14% .. so for him to get 10% with no points on 100% LTC  is a smoking deal for himsubordinating your position to a construction loan is about as dangerous a position you can find yourself in.. if it all goes OK then its moot..

GFCI outlets where needed, tempered glass where needed, smoke detectors, etc. 

When I experienced flooding problems, it was natural to want to try to jump right into fixing the issue, but I soon realized I was just shooting in the dark until I knew the cause of the flooding (for me, it turned out to be a ground water issue)There are lots of questions you can ask to try to determine the cause of the flooding--for instance, was the entire carpet soaked evenly, or was it only soaked in a particular spot?

Welcome to the Dark side Rusty.