It would be terrible to lose the home you worked so hard for over a mistake. 

No sure My Lori is in your Ex wife league but she is trying Hard :)  next year we will have to have a sit down about all these close and such..

The pictures, while not great, are also not the problem.Across the country, it is hard to rent a place over the holidays.  

So even if you had a buy out agreement negotiated up front and execute that buy out agreement, the bank would still require him to be guarantor unless something drastic changed on your side financially.The best scenario here would be to purchase and rehab the property using a hard money lender or bridge lender.  

If you are new, be sure you can raise the funds before proceeding.In my opinion, you are going to have a hard time raising money with a 6% pref and 70% of the profits after that unless you have a lot of newbie investors in your Rolodex. 

You worked too hard to risk $120k  on a rough investment. 

Realistically at this price point, its hard to find a good agent.

There is no specific IRS-mandated minimum holding period for a property acquired through a 1031 exchange before you can retitle it, that's why it's hard to find an answer. 

Hard part with business is separating your emotions from it.

Maybe there's an angle for seller financing or some other creative approach to get the seller the total return they want over time, but it's hard to say without actual facts and data.