The sale failed and he still owns it.One of the potential solutions is to use an SBA 504 loan for the real estate. 

It is still a seller's market in many geographic locations, so you can ask potential buyers for an extended closing period and/or with options to extend the closing period. 

Evaluate potential rental properties with a keen eye on location, cash flow, and potential appreciation.

The benefits of Kissimmee for a newbie is analyzing property potential is very easy - you will have a ton of carbon-copy comps to look at and the online estimators like Airdna can actually be pretty accurate. 

Start by networking with local investors, identifying target neighborhoods, running numbers on potential deals, and lining up financing so you're ready to act when the right opportunity comes up!

Also this could be a potentially lucrative business partnership.

I created an electronic google doc time tracker: Time LogContemporaneous time log of rental real estate activitiesActivity DescriptionTenant recruitmentTenant screeningNegotiating and executing leasesOverseeing repairs and maintenanceCommunications with tenants and vendorsTravel timeResearch for potential rental real estate (pub 925)Acquiring rental real estate (pub 925)Paperwork/bookkeeping/bankingResearch and purchase of materialsRent collectionEvictionOn-site cleaningBill paymentOther:Time SpentDateMM/DD/YYYYSubmit

Home is potentially upside down on mortgage (verifying that) and current owner wants too much for the house.

Is saving the fee a PM charges worth the potential thousands in cost and headaches?

Those things can and will hurt your monthly KPIs occasionally and sometimes for long periods.