An alternative would be an NPV analysis of each scenario, but I suspect the result might be the same for reason you have already stated - a high NOI valuation at exit.Cheers...

Remember, I'm trying to compare this to the alternative: Leaving my $ in a balanced portfolio of stocks and/or bonds.  

Alternatively, you should be able to do a cash-out refi with a portfolio lender at a higher %LTV with less favorable terms no matter how long/short you've owned the property if it is stabilized.

As an alternative, you could ask the broker for a change in realtors. 

Its a high risk business in any event and all the more so for a foreigner without very deep pockets, local knowledge and experience in expensive and time consuming foreclosure procedures.In short - my advice would be to stay with the current partner (or look for someone else acceptable to buy him out), continue enjoying the $500 current cash flow and look for alternative and diversified places to put your other hard earned capital.

Alternatively, if the appraisal comes back low and you still want to purchase, you would just have to make up the difference between what the bank will finance and the offer price in cash.

@Brandon KompOf course, if you take a distribution from your retirement account you will have to pay the taxes and (likely) penalties.There are possible alternatives which would allow to you use these funds without paying taxes or penalties.

I host a group called Black Diamond that alternates meetings between Burlington and Worcester. 

Is a lawyer the only person who can draft a option contract or is there other alternatives to get a hold of one?

On investment properties we cannot use that 203K loan referrenced above but Fannie Mae does have a renovation loan, Homestyle, as an alternative.