At the end of the day, the reduced basis in the investment should be exactly offset by the income coming into the construction business.

In Asia, buildings are actually built with bamboo tied together as the scaffolding, since it is extremely flexible and strong.

It will cost $5,00 to sanitize the home and have quarantine removed.I told the investor that I will just reduce his purchase price by $5,000 & he can pay to have the home cleaned.

Obviously there needs to be language in there about the pool, who's responsible for what, and hopefully reducing liability to a certain extent since they are knowingly renting a house with a pool.

If her income does not increase, her overall DTI ratio will climb, reducing her score.If she is not receiving any (or very little) income or profit distribution from the LLC, and things go south on the loan, things could get very ugly, very fast for your associate if material information was withheld on the loan application.I wouldn't add a partner just for the credit score.

I was also thinking of reducing the balloon payment to 3 years so I can get out quicker if I decide I need the money for my own business.

This lets you help reduce the income.

The second exit strategy you can do is reinstate the first in foreclosure as @Bob Estler mentions above (which goes to show how important due diligence is with rent rates on dangerous loans) since your 2nd is "Paid off" you can see if you have the rent rates cover the cost of the mortgage and maybe hope that the 1st lien holder will be able to do a modification to reduce the monthly liability since the property is upside down.  

Each having a relative on board seems to reduce downside risk.So BP, what would you do?

If you miss this window, your pool of renters is greatly reduced.