The 20 year amortization period gives you a lower payment while the five year balloon protects the lender from having their money tied up at a low rate.Finding a new lender is key. 

I hope it's not too late to invoke the partner aspect, it allows you to be a lot more demanding in terms of your due diligence, and it allows you to not be the bad guy if you have to turn them down ("I wish I could have helped you but my partner said no and we can't invest any of our money unless we both approve the investment").To your original question, IF you decided to make a loan like this, I would see three options:Unsecured personal loan (weakest/worst/don't do it option)Secured loan - they buy property and you are the lender secured by a mortgage on property (better)Rent-to-own - you buy property and they rent from you with an option to buy (questionable esp w/ family, may be tricky or illegal depending on how structured, etc. and see next point re: owner-occupied)However another aspect is that since this would be an owner-occupied property, there are a ton of consumer protection laws (Dodd-Frank) that apply.

I'd advocate both an umbrella policy (to protect the assets within the LLC) and an LLC (to protect your assets), and I agree that chunking is the best way to go (typically up to five SFR).

If marijuana makes you a "druggie" then our past three presidents and three states in the West have some explaining to do. 

Once the five days are over (5 business days), you can go down to the court house and file for the eviction hearing.  

Three of them are at night once a month and one of them meets at the lunch hour once a week so you have your choice of one that works best for you.. or like many of the members attend ALL of them! 

We have been working with the issue for three weeks to find out if it is a slab leak, or something else in the wall between the bathroom and living room are the cause. 

The two places that I went to are the local bank ($12,000 down and a five year mortgage) and the local credit union. (40 % down as a commercial loan).  

PMI hurts but we are still postive cashflow with only two of the three units rented out.

I was there last week and looked at a 2 bed 2 bath condo that was listed for $650K at Azul fives resort.