Which example you give the most weight to is totally dependent upon what your goals are and what your comfort level is. 

Some we have put into stocks, but we are really at a loss at how to invest the rest.  

While I may peak at Zillow to see what it says, I never put any weight on it and just use it as a hopping off point to drill down and do my own comparisons.The short answer is never use Zillow as your only resource.

Do you then sell for a loss or do you turn it into a rental?   

Shouldn't supply and demand should have some kind of weight in the process?

If the 2 partners with strong financial backgrounds can each qualify for the entire loan from a debt-to-equity perspective, and assuming the property has solid financial projections, it may take a full joint & several guaranty for the entire loan by the 2 partners (in addition to the third partner, which may not hold much weight from a credit standpoint but required anyway).  

and of course I am sure others will chime in that your only selling a contract but your not.. your double closing so your selling a home you do not own.you have to weight the risks.this is a tough game for those that are on limited budgets and heavy debt.. you may want to get that license and work on a team first then venture into investing.. 

This lends to going down the path of possibly providing the tenants with financing, installment contract, disguised sales, delayed closing transaction, equitable interest, refunds, lawsuits, loss of profits... etc.

Are you saying that you have RE net losses of $10,000 per year?

While it may seem unfair, many business are not allowed to depreciate capital expenses at all, rather gains/losses are figured at sale.