In principle, I get your desire to diversify.

At the end of the 2.5 years, I would get my principle plus another $5,000.  

I wanted to ask BP is it better to stick to my criteria to max out my loan (i will not have the opportunity to this program again),  receive higher cash flow, paying down principle on a larger loan etc2. 

If the objective was to get as many rental properties as possible within 1-2 years with $75,000 in cash, how would you approach it? 

This means your year one mortgage payment is $25,332 ($15,827 interest, $9,505 Principle) leaving you with $14,668 in cash flow or a pre tax cash on cash return of 14.6%.

I get that they are in a distressed time of life, just having a hard time overcoming my wife's objections when she plays devil's advocate.  

Below are some things you may wish to consider, as to which Corporate Enity is best, for your Business Model as well as your REI Goals and objectives.

Address their objections and concerns. 

If it did, I guess I could take it to court since it's the only way to access the parcel (and there's also another person living down there street, so they'd be denied access from their own principle residence.)

The contract sometimes is as good as the paper its written on, you need to establish a relationship, if you feel you have a shady principle pass.