you are too much into thr deal and your not a real estate agent which is very illegali am a property locator i specialize in wholesale contract properties for home flippers or for estate agent that want to invest with an intent to hold for rental propertiesi simply use wat my investors want specifically in a contract and property  i communicate with the owner or contract holder and try my best to let them know hey this is what a potential buyer wants their contract to look like and so forthif they agree then i step out and give them conract information to my flipper or invester and that's it i am done with the  transaction.my investers pay me for the information of a potential property for them before they even see the property or get any information about the property..

And of course done correctly you get stepped up basis for tax purposes then you can sell and not pay huge gains.. although you will have to talk to CPA about recapture.. or you do what a lot of folks do and 1031.. or you just live with the comfort of knowing you have millions upon millions of free and clear real estate. your grand dad is one smart guy .. 

@Marcus Auerbach Hey Marcus, I think I love the process and the structured methods for REI.

.- Is there a standard accounting method?

I am an introvert (despite the rumors to the contrary) and this is not my preferred method of meeting people.When they do approach me about getting together, I probably feel a little better if they phrase it as, "I want to know more about what kinds of clients I should refer to you" and of course we'd also discuss what their specialty and areas of expertise are and clients would be good referrals for them at that meeting as well.

I'd recommend taking a step back from the situation, look at it from a 10k foot view and wait until you can approach this with a clear mind and heart.

Don't step over dollars for nickels; you are still getting a return.

From here we are going nowhere and he keeps asking what the next step is. 

Looking for any advice on what step I could take in evaluating this property and any advice on funding this property 

Even if you took them to small claims court and won collecting is a whole other ball game.This is why as mentioned they get draws for various steps of completion.