No notice, no wiping out.All these pitfalls don't stop people from bidding at the sale. 

As @David Krulac said there are a lot of pitfalls that people ignore when bidding.

I just think people have to know the potential pitfalls and be able to have a plan to be able to weather a storm (massive negative cash flow or temporary stagnant or negative growth).However not sure how the issues you point out in people that buy a "cash flow" property vs. an appreciation play are different.

Pit falls of forums.

He proposes carving out a 1.5% rebate for me and a 1.5% rebate for him, which would essentially make him whole at 3% (1.5% of buyer's commission, and 1.5% seller's commission).Does anyone have experience with this scenario, and are there any pitfalls going forward?

We pride ourselves on having the tools and knowledge that newer real eatate investors need to avoid some crucial pitfalls.

When "buying" on a lease option (mis nomer, you are "controling without ownership")Sandwich, you are in the middle, there are pitfalls, not for the rookie.

But, has anyone been able to split during refinance time and if so what actions or pitfalls should I be cognoscente about.

I grew up in Baltimore and love the real estate scenario there, although, just like anywhere else, there are pitfalls aplenty (I've learned the hard way). 

Most likely they will point out potential pit falls and shortcomings.If you post photos of the property and dimensions they can even help you estimate what a contractor should be charging you to repair the property.