The property has not sold and I am risk of default. 

You can also add your own cash to the purchases and that would actually increase your equity.The strategy above of selling and 1031ing into multiple properties with some of the purchases paid for in cash and some with maximum leverage is a great late market strategy that lets you protect some properties from debt risk while still letting you aggressively use leverage on others.  

I genuinely look forward to hearing from you all and at the risk of sounding cliche or corny, I thank you all for the work you do for this site - it truly does make a difference.

There are ways to convince them to leave early, but then you’re also running a risk of them saying no.

We would love to do a flip one day but I feel it is an additional risk if you aren't living close by the house  that you are flipping.   

Any thoughts/input appreciated. 3) Any input or advice on our deal and how to keep risk minimized, and everyone happy would be appreciated. 

Of course, you will be risking not getting paid.You also want to calculate your gain carefully.

I would ask the lender, but probably not most lenders want you to have skin in the game, even the seller takes on a lot of risk if you don't pay, because they would not be first loan position. 

I didn't consider all the risk there.

This can work out for you but your risk is in buying the correct property with good mechanicals and modest deferred maintenance.