Any advise on a way around this road block?

Any advise would be greatly appreciated.

Best advise I could give you is to do some in depth research on the marker you plan on buying and once the air clears from what's going on start building your portfolio. 

Be advised Speed's education costs $15k for either performing or non-performing, $30k for both, at least it was that a few years ago.

Based on what you laid out, if you're going to DIY the 1065, you'll want to become familiar with maintaining 704(b) capital accounts and read about 704(c) property and the associated tax allocations.This isn't really something that's advisable DIYing, but if you're willing to put in all the research and reading, perhaps it is possible to get the 1065 materially correct.

There are only few homes in the small community that come to the market for sale.We’ve been fighting hard to resist the temptation to go with the home, but also avoid any risks as possible given the current crisis we are all in.Requesting all experienced investors and home owners to provide some thoughts and advise here!!

I agree your history makes sense for your investments and risk tolerance, but a lot of people want to put the 2nd SFR into an LLC once it becomes an investment.I usually advise people to bundle about $3-500k in equity into a single LLC, in Texas we have a series LLC which can really provide the best of both worlds--separate entities, but much lower costs.

Could you advise what should i be looking for in exchange for money I put in?

I've worked with investors that have been in similar situations and I want to best advise them!! 

As we found that out, the builder looked closer to the 3 rooms and advised us to remove all the existing drywall and ceiling.