Personal Property: $30,000                    Personal Liability: $300,000                    Replacement Cost: Included                    Medical Payments: $1000                    Loss of Use: $6,000                    Property Damage to Others: $500                    Mold Property Damage: $10000                   Mold Liability: $50000                  Tenant Pet Damage: $500                  Additional Interest: Myself (the landlord)2) With above coverage added to renter insurance, do I make it mandatory for the tenant to have a separate pet liability insurance?

@Drew Markert Congratulations on your recent acquisition (many never get started).Making sure you have an aggressive payment plan for the credit card(s(, as this is extremely important so that when you want to REFI your DTI is where it needs to be and that you can rinse and repeat relatively quickly. 

She wants me to get the home and land but want to give the money she would receive from my down payment ($80k) and monthly payments to her estranged son’s children.

The rents will cover the home mortgage and the car payment. 

Sure, some is cut and dry, comingling funds, clear breach of contract etc., but far as strategy, how-to, it's almost never a "this is the 1 way to do it".

The note holder collects the remaining payments due on his note from the treasury bond coupons.6.

The reason is owner builder is going to be sloppy and make mistakes but you have to live in the mess and fix it/ and you saved some time/cut corners for owner occupancy. 

This is how bank originated debt works in the apartment scenario you describe: The lender collects their origination fees and debt service payments are then collected priorty every month until the loan is paid off.  

From then on, I make the payments and I own the house.

Look at your expenses- if you have a car payment, credit card payment, etc, get rid of those.