Just managed to kill the raider lord with a DE mindcrafter, so I decide to buy some keys after my hooded cloak got exploded. So after locking the door to Hotzenplotz I proceed to mind blast him to death quite safely from outside his room at a mere level 6, and for some reason this also didnt anger the cloaked ratling like it usually does. This makes Hotz a complete joke for all mindcrafters.
The marble amulet and healing Yrrigs got me to Neutral
The second time I tried this the cloaked rat did get mad, so back to leading him to Terinyo