They get a fair-ish rate of return with they added kicker of seeing how the sausage is made. 10% is on the lower side for a second position loan, particularity since it looks like you are cross-collateralized, but then again they get a unique educational bonus, which is hard to put a price on. 

Bonus Question: Do you require your tenants to get their own renter insurance policy?

Was browsing the BP marketplace listings and came across this https://www.biggerpockets.com/real-estate-listings/2-family-turn-key-rental-property-seller-financeThat's nearly 5% cash flow and the rents don't seem to match up with the Rochester market.

@Wendy Lacey - My $0.02 is that you'll be required to take title in your personal name matching the name on the loan for the vast majority (if not all) Banks and Traditional Mortgage Lenders.

After W2ing themselves, they both have another $100k sitting there.Sally gives herself a nice "shareholder distribution" (recall, she owns 100% of the shares) as a Christmas bonus to herself of $80k, leaving $20k in the business for operating expenses going into the new year on December 24th.Johnny decides to leave the funds "in the business," for "future investments."

(Some conditions may apply)They are experts at matching you with the best-suited mortgage.Get mortgage rates at wholesale, guaranteed up to 120 days.They work for YOU, not the bank.

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Repaired roof and siding, new HVAC, new drywall and insulation, new electric panel and wiring, new hot water tank, totally new bathrooms and kitchen, converted a bonus room to a master, new appliances, new fixtures, drywalled gararge in, cleaned up the yard.

I had a potential tenant also just offer to pay through January - she is getting a bonus from work, and wants to enjoy the thought of not having rent for the next 6 months. 

That means your tenant is paying the mortgage/tax.ins for you...and, you get a bonus of $1800/year to do with as you please (as long as you don't put it towards the mortgage...which would put you right back where you are now...on.y worse).