Have the balls to pull the trigger and follow your dream.

I prefer to NEVER spend my money...and never add any of my money to any of my spent money I originally had to spend to get the "ball rolling". 

I don't have a crystal ball, personal opinion in the short run and mid run you will see a price adjustments and over supply of inventory in Oakland once these new buildings are finished.

I don't want to low ball an offer but I don't want to pay higher than market price either (even if the ROI looks promising) so I am trying to come up with a way that would  be beneficial for both parties.

You should be able to ball park it to give an offer.

Sorry you’ve had so many curve balls of life recently.

Any luck picking up that ball and getting it moving?

The lien holder has the ball.

I tried convincing them that they should find a competent landlord but I think the ball is essentially in my court to either do that for them or bring them a proposition to take over the property altogether.The house is worth roughly $480k and they still owe $180k. 

No one has a crystal ball that will tell them with certainty.What I find is that refinance appraisals are low and the low LTV will limit your cash out to less than what you are expecting.