Given no alternative investment options, tax implications, etc, you should always choose to lever appreciating assets and pay cash for depreciating assets.

The alternative is to obtain a good education from conventional sources, like a $350 course at a real estate school, or buying a $35 real estate book that agents learn from or reading on sites that teach real estate before how to use techniques that are all based on basic functions.

They may be more amenable to a flat fee plus a lower percentage - at the very least it's an alternative that helps you offer options that still cover costs.I have to say, I can't recall seeing anything as low as 2% for the buyers agent in my market; the lowest I've taken is 2.7 but the lowest listing I remember running across were 2.5.

Also, the proposal that @Jay Hinrichs made wasn't a bad one given the numbers (and the fact that you don't currently have any alternatives).But, I'd be willing to bet that if you get an inspection that indicates that the house is in good shape, and assuming your $900/month rent estimate is accurate, you should have no problem finding someone to loan you the money or partner with you. 

I currently have some commercial property in Melbourne, have done some flipping and small development however due to what I believe is simply a way over inflated market have seeked alternative REI's abroad.

This is just one example of alternative financing for investors. 

Another alternative is you guys join your two companies inside another vehicle, like an LLC or LP, each contributing the set amount of cash into the company and the company makes the investment, title vests in that name and control of the company is determined by the Operating Agreement.  

Alternatively, you can find older folks who may want to carry back at 5 or 6%. 

Are there some similar alternatives so that I could take this house off of his hands without an outside investor or money from my pocket?

Tunkey is typically the alternative for those in the higher priced markets.