That is why it is important to have contingency plans a solid agreement in place before entering the purchase of the property.Your options are to buy him out yourself or raise cash to buy him out. 

-----Note: Most of these items correspond with terms in our rental agreement and property rules.

Verification of income the property generatesi'm probably missing something with regards to due diligence, but once that is complete and you have an agreement in principle on the seller financing terms have an attorney review before signing on the dottled line

So if at death it is worth $5m, and of that $5m based on the waterfall agreement you and your sister would get a combined $800k - that $800k does not get stepped up, just the $4.2m that belongs to your father does.If your father is subject to estate taxes, and there are substantial discounts taken on the valuation of partnership interests in his estate - that cuts back on the step up, but it saves steeper estate tax, so it is a worthy trade most of the time.

The safest bet is to try to get a variance from Union City. though clever, your combined unit lease agreement would likely cause trouble if ever scrutinized by the Tenants or the municipality. 

I'm a little surprised no one else has mentioned this yet, but if your agent is in compliance with the new rules, they would have had you sign a buyer-broker agreement before showing the house, and I pray before starting negotiations for you.

Since you would have had no agreement from your LLC to pay for the mortgage but give them all the benefits now you are just doing the same for me.

Review their management agreement.

Seller is only required to do what is in the purchase agreement, so now is the right time to address that.

Review their management agreement.