Also have been hustling none stop mowing and rebuilding dirt bikes I have about 3 grand in my hand so far.

You will get a higher interest rate and roughly 3 grand in closing cost.   

2) Sounds like there are 2 legal, conforming units and then a grand-fathered/accessory garden unit where you would live?  

I have seen multifamily 'handyman specials' in that area for as little as 7 grand.

Sure everyone wants to find that grand slam deal but it's all what you put into the acquisition.

Now I don't have $14 grand I can just throw at this thing, but I do know another hard money lender (I know this guy personally from a local REIA, so this isn't a company like the one I'm using to cover the bulk of the purchase price) that will very likely be interested in covering that amount.My question is: How does the 2nd lender (for the $14k) protect their interest if the property is already being used as collateral for the 1st lender?

Maybe we can come up with something that actually makes a difference.No promises, no grand plans (yet).

The ONLY thing I dislike about not using conventional finance for this type of deal is the 5yr balloon, but in my grand scheme I had been hoping that the market came back in the next 5 yrs and I had planned on selling some things, including this place.

the buyer does what, pays her the whole 30 grand and she pays him the 20?

Alot of spaces though (you said 10% occupied so im assuming there is 16 people there. and a bunch of empty lots) to have to fill with homes. homes are like a couple grand to move to begin with.