I would favor investing some money in securities to provide diversification.  

In my experience I have found that if you treat your tenants with respect and ensure that all reasonable repairs are completed in diligent fashion people have no reason to go.

You'd likely be able to get ~70% LTV but since this would be an asset based loan the interest rate would be quite favorable (especially compared to hard money). 

They are doing me a favor when I use their money and I am returning the favor by providing a desired return on that money.

I've really thought about doing that as other areas around the country seem much more desirable and the "numbers" seem to work in my favor as I am a new investor to real estate who may not have much capital compared to others who have been in the game longer.

The favorable financing available to an owner occupant.

By leaving the arrears in the rent side of things, I would think that he is doing you a favor, guaranteeing that you can collect all the fees.

Brice,The demographics you describe sound exactly like my investment area, except the unemployment rate is more favorable in your area!

I found this:§ 5307.01Tenants in common, survivorship tenants, and coparceners, of any estate in lands, tenements, or hereditaments within the state, may be compelled to make or suffer partition thereof as provided in sections 5307.01 to 5307.25 of the Revised Code.The content of the petition is governed by statute:§ 5307.03.A person entitled to partition of an estate may file his petition therefor in the court of common pleas, setting forth the nature of his title, a pertinent description of the lands, tenements, or hereditaments of which partition is demanded, and naming each tenant in common, coparcener, or other person interested therein, as defendant.The Court orders partition:§ 5307.04.If the court of common pleas finds that the plaintiff in an action for partition has a legal right to any part of the estate, it shall order partition of the estate in favor of the plaintiff or all interested parties, appoint one suitable disinterested person to be the commissioner to make the partition, and issue a writ of partition.

I am a PRO Member on BP now without doing my first deal, but I feel blessed and highly favored to be apart of such a great community...