If I were able to pitch the idea and get the Owner on board with my idea, what are the Pros & Cons of this?

Owning individually after 35 years plus getting your wife on board to the refi idea at all is just noise IMO. 

Which is different than scenario 2 where you will pay tax on everything you pull out of the 1031 exchange.Make sure your CPA is on board with you doing a 1031 exchange on this sale. 

If you signed the lease long before the cancellation, then you are entitled to keep all the money with the exception that you need to diligently find a new tenant and then refund any money you did not lose.I'm on board with a few posters who say they would give back all the money because I know how it feels when I want to back out of deals.

He’s 100% onboard with this I’m just curious if this is the most efficient way to do it in terms of ease and money.

In your experience (taking on board that the unexpected can and will happen) in reference to thinking long term, is it best to try to plan out 5 years?

I helped my parents purchase a three-story (plus partially finished basement) building that has a four-stop, passenger elevator last year.

This gets them on board as well as having them ready to issue you a pre-qualification letter when you get ready to submit a bid.

@Nathan G.I've actually heard this story from new tenants coming onboard with us a couple of times.

@Victoria Davis any real estate transaction regardless of where in the us, you should have an attorney on board reviewing docs.