Follow the path for each option you identify to conclusion.  

Michael Loflin ,Thank you for your reply I have come to the conclusion that I am going to have to wait till the 6 month Seasoning Period ( June of this year ) , before I can do the Cash-Out refi.My plan is to get 80% LTV on my Primary , which will give me $17,000 that I can get from the refi , and then Have my All-In costs on the next Investment property be around the $70,000 mark, at a down payment on my part of 25%  ( assumes a Portfolio Loan ) ...... so around a $17,000 down payment if 25% down is what I have to come up with The amount I get from the Refi will cover ( In Theory ) 100% of what I'll need for the Down payment ( I am adding Closing costs into this $70,000 figure as well )These two properties from what I have learned via keeping up with the market in the are for going on a year now .....

You need to deal with the issue to a conclusion now.

Dan I agree with your conclusion and thats how I would pitch it to the seller anyway.

My best conclusion is to have the rented unit break even with expenses.

That seems to be the ongoing conclusion in finding a mentorThere's also several free investor meetups in the area check them out, network, and build relationships  :)

I've listened to a few podcast and read a few books on private lending and we come to a conclusion that private lending with terms in place is more ideal for the start of our business.

(but what do I know).In conclusion, the appraisal of $62,000 (repaired) will make it impossible for me to go to another lender and convince them that this property is a good investment ($60k) so I will be walking away.

I know that at the conclusion of 2015, I calculated a loss of over 2,000 vested hours trying to make something happen! 

There is no enforcable "penalty" anyway, and he could never collect the the "listing side" of any commission.....both of these lead to the conclusion he is an incompetent idiot.