Usually friends and family tend to be uneducated investors. They don't understand the risks of startups, and only look at the upside.
The relationships and awkwardness aside, I would stay away from it, just because it puts the wrong pressures on you once you've taken the money.
If it's love money, then you have no one to answer to. If it is an investment, that someone is looking for a return for, then you will be answering to someone who is not qualified.
If the goal is to become fundable as soon as possible, and get some educated investors on board. Take a loan, because you will pressure yourself to do what it takes.