Paul, MN:The suburbs of the Twin Cities are seeing a good pick up in tenant demand, and I’m amazed that demand has remained robust late into summer.

You already planned on replacing the flooring so why charge them for something that you've already determined has no remaining value and requires replacement?

Your investors get preferred share - I give between 5-10% interest and between 30-70% equity.Let's assume you give them 7% and 50% equity.So, $1M x 7% = $70,000; remaining is $50,000 profit.

A seller showed me his financials, and started with 10% of gross income, but then did 10% of that lesser net amount each time when calculating the remaining categories.

The remaining $80,000 is yielding exactly the APR of your mortgage (i.e 5%/yr).

When you have adequately proven that you can carry out this deal here is what I would offer to eliminate as much of the remaining risk to your private lender.1.) 

So many have been pushed from their homes in these areas and some are now retirees having to leave their homes because same situation...taxes so my heart is wanting to find a way to help someone remain in the area they have always called "home".

But if that tenant is adamant about being removed from the lease, what are my options for the remaining 2?

When you take the loan balance remaining and you divide it by the monthly payment, you come up with a CFI number.

The contract stated that they take 10% off the top for administrative fees, then the remaining 90% is split evenly between themselves and me.