People are always fearful.

Rajib, I understand you incurred financial losses here, but these items are typically considered "Wear and Tear". 

Too many people run them like they drive their cars: stomping on the gas, slamming on the brakes, then complaining about poor MPG.

Option 1:Pros:Simplicity: You avoid the potential complications of alerting the lender.Maintains Low-Interest Rate: Since your loan is at 3%, you continue benefiting from this favorable rate.Avoids Immediate Full Payment: You won’t be forced to come up with $45k immediately.Cons:Risk of Detection: If the lender identifies the payments coming from an LLC, they might call the loan due.Potential Consequences: If the lender enforces the due on sale clause, you might be forced to pay the remaining loan balance quickly.Option 2:Pros:Transparency: Being upfront might build trust with the lender.Possible Flexibility: Given your solid payment history, the lender might agree to the arrangement.Legal Compliance: You avoid any potential issues with violating the terms of your mortgage agreement.Cons:Risk of Loan Acceleration: The lender could still decide to call the loan due, forcing you to pay the remaining balance.Potential for Higher Payments: If forced to refinance, you might end up with a higher interest rate.Given the pros and cons of each option, but a cautious approach might be best:Consult a Real Estate Attorney: This can give you a clear understanding of your legal standing and potential risks.Evaluate the Importance of the 3% Rate: Weigh the benefits of keeping your low-interest rate against the risks of potentially having to pay off the loan early.Consider a Gradual Transition: This method allows you to continue benefiting from the low-interest rate while reducing the risk of triggering the due on sale clause.

I know it's ridiculous but I always feel a sense of connection whenever I post a question and get so many wonderful responses and people offering their expertise. 

Currently you can find 1000sqft apartments in decent neighborhoods starting at $45k and homes starting at $60k , this is info i found online Bolivia is one of those places where people are still old school and you find the best deals by word of mouth.

My understanding is that unless the borrower is pledging/securing your loan with particular and specified assets in a security agreement, you would be a unsecured creditor as far as the personal assets go, not much different than credit card debt.

Especially if your job involves knowing what to look for, you will be a great asset to people looking to invest and this should help raise private capitol.

Will your partner be upset because you are getting the better end of the deal living rent free(assuming you aren't paying rent).What if only your name is on the mortgage and deed, then the tax documents will all fall on you and your tax return and not his which makes it more complicated trying to shift income to him.If there are two people on the mortgage, it will impact both your DTI ratio's equally in full hurting both of your abilities to get credit in the future until the property is sold.Why can't you do the live in flip on your own?

Your plan is sound, but you want to make sure your whole family is on board and understands that you will be living next door to a tenant who may knock on the door at any hour.