Easy solution is to close on the property then to market it. 

Easy and simple.  

I feel like there needs to be a balance between not making to easy/ attractive to just sell out, yet keeping it fair for the exiting partner if that happens to come up. 

Personally, even if I went by the real estate agent’s numbers once I paid selling commission there is almost no profitFind something which needs more money to fix up and easy to be upside down

On to your questions:1) Earnest money back should be easy.2) Extra expenses will be a hard sell.

@Mindy Jensen, shame on you - we can always find a way to squeeze a little 1031 tax deferral in the mix :)The sale of a property like that is very easy for an experienced team.

The main problem I need to solve is to convert it back to a legal single family house so an end buyer can get conventional financing on it.Up and above that Its up to my discretion on the level of finish.Or I could take the easy profit and sell now...

I am not looking for a mind blowing deal - I know they are not easy to get and I don't want to bide my time waiting for one to magically appear especially as someone not in any secret society.

I want to make everything easy for accounting purposes As well as make it easy on me.

Getting a second mortgage for $62,500 and leaving the existing $50K loan in place is possible, but not easy to find lenders that do that.Sorry, but requests for lenders can only be posting in the Marketplace.