You should prepare yourself well before putting yourself in a position to lose money on something you know very little about.

In reality, the current owner is losing a lot of money every month.

We’re not sure if this is the right move, as we would lose the additional monthly income from the rents, and also any equity the house may gain in the future, if we choose to wait to sell. 

In my opinion losing a relationship with a family member or even a friend over a few bucks isn't worth it.  

and next how would the rent you lose out on by not renting it out compare to what it would cost you to live somewhere else?  

As I’m learning more and more about the process and hearing other insights, I am losing interest.

Give them room to fail without the risk of losing their job.

He can lose the EMD also.So the question remains what does the contract say about keeping the EMD if the buyer does not perform? 

Whoa, whoa, whoa there.Go get your job going again.Do not spend money you do not have on a guru - that is for people who have money to lose AND, the information is out there to be had for free.Live frugal and save your money.

That's a lot of inventory to lose year over year.