One long-shot option is to offer a lease at something like $1,300. 

After talking to another family member they said they would be willing to go in on the duplex and offered to pay the $40,000 down payment and help with any repairs but they want to be "partners" or "own" a percentage of the duplex.

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Now, moving forward he offered for us to take it over completely.

@Adam Bartomeo thank you for offering your help! 

There is a solid argument of course for MF investing and scaling based on NOI.

Note if you go over 4 units, your valuation will be based on NOI and comp rate.  

So - somewhere 2 hours away, or somewhere you like to vacation in, or where all your family lives, or where you plan to move someday.Too many people are trying to do exactly what you're doing - pick a market based on a formula - and they end up buying a random 'cheap' property thousands of miles away, turn it over to people they've never met or even spoken to, and then... lose money.  

I have a W-2 Job, capital saved up for a down payment (or two), and a buy box based on my affordability.

If you really want to get rid of them, sweeten the pot by offering to return their deposit after you verify the unit is empty with no damages.