you can pretty much count on paying around 25% in taxes plus another 10% penalty, not that I'm against using retirement money and there might be some ways you can mitigate those amounts, but if not, 35% is steep.

You'll need to know how to mitigate these risks and put your partner at ease.  

You can do better with next to no risk.Screening is all about risk mitigation.

There is a level of risk mitigation that agents provide.I know Jacksonville better than most.  

I have $95k saved up for my next acquisition and do not necessarily need the cash from the sale of the property, but see this an opportunity to move into a larger multi-family unit or several SFRs, to better diversify my portfolio, increase cash flow and mitigate risk. 

People mitigate the risk by knowing their market, rental rates and vacancy rates.

I would suggest taking advantage of every new homebuyer program in Baltimore, make sure you are in a CHAP district to mitigate tax risk and find something where you can put in a few roommates or a duplex. 

By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind.Memphis has a lot of opportunities. 

My primary concern would be to mitigate the damage and in doing so treat all individuals as trespassers.

There are million other ways you can do it mitigate risk and save taxes.