I am interested to know which would be the better choice to avoid paying as much taxes and closing costs as legally possible. 

I’m not allowed to legally in my area but everyone does.

And once it reaches 60 days and I haven't gotten paid, is the landlord in his legal right to call a sheriff to evict me?

This had been permitted, no one asked him to stop because the unit was in limbo due to my mother not wanting to clear out my father's equipment.  

You will need a legal partnership contract and your lawyer may suggest what should be included.

If there is a sign some people will not go in to depth about how they pay their Bird dogs legally. 

The information contained in this posting is intended for general informational purposes only and should not be construed as legal advice.

Don't try to figure out title issues on your own unless you're a skilled legal practitioner in real estate. 

This choice changes the situation for the lender into an equity partnership which increases their risk, which deserves a higher reward, in equity, cashflow and sale.In any case the lender should be on title (like a bank would) to secure some or any colateral.I am a multifamily real estate business owner and not a legal expert, therefore any agreement should be drawn up and executed by an attorney specialized in your field.

All permits pulled, inspections done, work took place and went well.