Perhaps we "buy" the house from them for the $328K balance to satisfy the lender and don't need a large down payment and then have a separate contract with them to pay $x per month until we've paid the full $172K amount.

The payments and interest are high.

Here are some tips to keep your projects moving smoothly and scale up:Managing ContractorsControl Payments: Break the rehab into phases and pay contractors as they complete each phase.

Rent to Retirment (RTR) has very recently announced the RTR academy that investors can join for a one time payment to learn everything about investing.

They are able to See a COC return within weeks of the down payment, when the unit rents. 

Otherwise, move debt down to a 7-10 year time frame + lower monthly payments.

As long as the rents can cover both the current PITI and proposed P&I payment, credit is at least 680. you should be able to qualify. 

Or a seller finance calculator showing the monthly payment based on negotiated price, interest rate, down payment, etc.

Still waiting on payments to start with the city of Memphis. it was supposed to be October 1st but I haven't seen anything yet.  

Start by serving proper notice of the management change and request payment details.