There are too many unknown details here to give you much of a meaningful response, especially if SEC rules are in play here.

Best to always identify quantities and tasks to improve and then plug in some meaningful allowances for each if you can?

For good measure, the new investor could put in $10,000 of their own capital to show that they are going in with what they can reasonably afford, so that they have meaningful skin in the game as well. 

I would def say sell for another property and extract the entirety of your equity if the ROI on this property is going to drop below your target number and you can do better elsewhere. 

Or we rent for long term (+25yrs) and pay full amount of cap gains tax when selling anytime after the 3yr Mark, which would be a meaningful tax hit.If we sell - plan would be to reinvest out of state in a few properties and Put our cap gains tax savings into the market.I’m not sure which direction the math supports.

Figure out how to extract data from public records, if that's possible in your area.

An agent would / should have extracted what was needed (e.g.

@Allen LiMark Kohler's book had a more "meaningful" message about it being an extra layer of defense. 

My hurdles to overcome before making my first investment include figuring out financing, learning to understand the market I am investing in, and developing an understanding of how to structure partnerships and/or syndications.I am looking forward to making meaningful connections on bigger pockets, and digging into the forums and educations materials available here.

What percentage of first flips result in any meaningful profit at all?