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.

At the end of the job the accountant tells owner they need a w9, I will give you w9 but you don’t get to get $800 back when I reduced the price of the job by $800 to a $1000 don’t pretend you don’t know your having someone do a side job for a reduced price.

Some proponents would say you need to dip down a little when adding another employee before you start rising up higher.If you add a bunch of employees but have reduced cash flow then any little blip in business can make you start bleeding cash.

If you can't take the hit on your paycheck, then you can offset that payment by reducing your 401K contributions.  

Like most things it's not impossible to sell outside the season, which I have done, but the focus needs to be on the well known season.In selling homes I have read there are some advantages to selling in the winter like reduced competition, and potentially higher margins.