We all think we can predict the future, but nobody can. 

I'd let them go, clean it up and get it rented again asap and consider any loss as what you paid for the learning experience and make sure you button up that hole in your lease for the future. 

I'll be more than happy to JV with you on future deals.

If it is trapped in the employer plan provider and conventional stocks, then you would have in the future a nice chunk you have saved up, that can then be moved into a self-directed plan of your choosing once you leave this employer.

We have decided to work with someone else at this time, but will certainly keep you in mind in the future," can go a long way.

I think if you share the fact you're getting quotes from multiple contracts and will work with whoever the best fit is will keep your options open to use any/all of them in the future rather than closing the door on one or two of them.

Now, looking ahead into the future if you don't plan to live there after one-year, those numbers might cause issues.

I’ll definitely keep you in mind for future deals of if this ends up falling through. 

Granted I could always try and re-do it in the future and even try and go to zoning to get it made a 3-family over the 2-family, with that kitchen, 1-bed, and 1-bath being an individual unit.All of these options obviously have their individual positives and negatives. 

@Shaun MalcolmWelcome to BP, and congratulations on making the decision to invest in your future via real estate.I have written a few blog posts that may help you get started here on BP, and with your investing.