Why not take out a loan from the equity to pay off that debt?

On the surface, it’s a game-changer.

Renting it out before that could violate the loan agreement unless the lender grants an exception (e.g., job relocation).

Need more details. ;-) The following is just general informationIt sounds as though the seller has an investment to sell, not his private home.

Seems to be decent on Airbnb with the guest house/ADU units with all the hospitals nearby.

Because they have no clue what so ever what there talking about, and there posting there feelings. 

Quote from @Dennis McNeely: In a sandwich lease option, the investor exercises their option with the property owner to purchase the property when the tenant-buyer indicates they're ready to exercise their option and purchases the property.

Because the chances of successfully concluding a wholesale transaction when you lack experience, knowledge and capital are so infinitesimally small that you’d be better off playing the lottery.  

What if the employee is fired for stealing?

It’s unnecessary and potentially problematic to add the ex-partner to the title before the sale.