Best Way To Purchase SFR From Business Partner:

[Gabriel Wertz]

I purchased a single family detached rental with a business partner about three years ago. We have tried to list it with an agent twice, with not so much as one offer. It is currently not on the MLS and we are in the 4th month of a 12 month lease with a tenant paying $750.00 a month. We have a total of $49,800 (including rehab) into the property. We originally purchased it for less than $20K on a combination of cash and credit cards. About a year into it my partner was able to qulify for a loan to consolidate all expenses into one loan.
I think we both got a bit scared that we will never be able to sell it. However, after reading you website I am thinking a couple of things:
1. This is a nice cash flow property that I should be thrilled to keep for 20 years.
2. Maybe the fact that agents were marketing to owner occupants instead of investors is why we couldn't sell it. I would think a property that is pulling $750 a month rents would easy sell for $60+ ??
3. I could purchase the property from my business partner for the balance of the loan, plus $1,500 to him for profit.

My question: What would be the smartest way for us to do this transaction as far as closing costs (obviously the benefit of NO comissions, etc...)
I can come up with 20% for a down payment of a $50K sale so a conventional loan would be the best way to go, correct?

Thanks for your input!