We are in a similar boat, however I have not yet found a solution for less than $5K even for above the ground.

The only solution I see is connecting them to city sewer which won't work 95% of the time. 

Private lenders or even creating a small syndicate with a group of investors might also be worth exploring, especially since you can point to your uncle’s track record and your own experience managing rentals as a selling point.If timing is tight, you could look into a bridge loan to secure the property while figuring out a more permanent solution.

A lot of universities have students that need mid term housing due to graduation dates, mini semester programs, etc. and I've found if you approach them and offer them a solution to this problem, they are willing to work with you and help send business your way. 

Understand, real estate may not be the solution you are looking for.

Also be open to knowing that you are acquiring a series of problems.You're in the solution business. 

They would get that $500K tax free and the rest of the tax would be deferred in the 1031.A very elegant solution that puts $500K tax free in their hands now. 

One solution I’ve seen is closing the purchase in cash, then securing the HELOC afterward, though this carries more risk.

He wasn’t interested in brainstorming solutions, like using the inspection as an out.

@Jonathan Chan I have a solution for your problem.