I start by telling them we have a lot of money tied up in the property, and we've been burned by folks that wanted us to believe the best of them.

Hey Jeff without knowing any details everything is what you are able negotiate. but you have to take in account the years interest rate and purchase price and what kind of cash flow.I will say get a mentor if you’re inexperienced these kind of deals can go left if you really have little knowledge when it comes to structure .

I would take out a private loan on the paid off property to get the other one squared away

You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.Good luck.

You will suffer.PMC 2 may not be playing "fair":1) What's the penalty if they don't rent the other unit in 21 days for $1350?

If a seller wants to sell for future value they need to do what is necessary to bring the value up to that price. 

And two, the help if you ever come into a lawsuit.

Any idea where the information was coming from? 

I have totally given up on Quickbooks though it remains the best accounting software for the non CPA type 

I signed up with Jason Yarusi.