I let the grass grow 7" long, to shade the soil and keep moisture and help prevent weeds, so I only mow once every 6-8 weeks. 

I want to own the property under my name but I want to somehow set it into a partnership so that I do not have to do gains/losses.

Probably wouldnt be worth it to take the guy to court and pay lawyers, private eye and your loss of income from not working to go to court. 

I was trying with one lender who said they can do the cash out at the beginning, but then after reviewing my 2016 tax return, which claim a loss on a K-1, they said they can not due to the debt to income ratio would not qualify (comes to negative..).

I changed some of our policies to help avoid and mitigate losses, such as not allowing section 8, nor DSS.

Here is my take on this, the risk does not change for me if I use private lenders as no matter if it is my money or theirs, even in a loss situation, I am going to pay back that lender (or lenders) no matter what so taking on debt does nothing to mitigate my risk in that scenario.

My partner and I took a big loss on the sale (bad location next to a high school, sparse comps, and unpermitted work we had to correct) but did receive interest for eight months, so only a small loss in the end.If the borrower declares bankruptcy you would be a secured creditor.  

Selling and not taking on the debt would have meant a 60k loss for my family, how long before we recapped that loss? 

Is it worth to do anything about it or just suck up the loss and learn from my mistakes?

People still face all the aspects of what make people move-divorce, break ups, death, job loss, job transfer, wanting a different neighborhood, etc.