It doesn't look like you will be able to refinance in the near future so the scenario may look like this:  (Lose-Lose, his name is on a loan for a property that he doesn't have the deed to and you are morally and financially responsible for a property that may not be cash flowing very well). 

Not that I would do that as I would be losing gains on my money in my 401k.  

The biggest fear is that taking action will lose money and possibly your credit standing. 

Historically hotel restaurants lose money in this space.  

I always worry on running out of cash on a  rehab and losing months of rent before i can do them.

PropA rented for what I paid in mortgage, so I am losing $79 due to HOA dues.

So the people in the house decide they don't want to buy the house now but don't want to lose their option money.  

Just want to also clarify that using equity in your current home is great to purchase other properties but remember that it shouldn't add a burden you can't handle or you run the risk of losing both.

You can be in the note "business" for 10 maybe 15 or even 20 years and never have an issue, you can also buy your second loan and lose your tail and be fined from not being in compliance.

Unless they're self insuring, which they will lose their butt on that if they are around for the next 10 years giving away equipment at that price.