Don't go for one that requires a ton of work unless you plan on using it as "education".Investors fail for a variety of reasons, and here are just a few...1) They try to DIY everything and instead of being real estate investors end up becoming a combination of "go-fers, Mr/Mrs Fix-it, painters, plumbers, electricians, land lords, attorneys, etc". 

I was gonna title this: "I expose scummy landlords to prove how the capitalist system is corrupt and failing".

If partners are obligated to make contributions by agreeing to terms and fail to fund their portion (I am not sure what is the best course of action here…)4.

Investing out of state is a hero’s journey arc: you’re leaving home (virtually) for some higher goal, you’ll meet a team of new companions to help on your journey, you’ll hit some bumps, you may even fail at times, but defy adversity and press on, and you can be successful and return home to tell the tale of your adventure. 

@James WierzbaOuch.I think you are right in not having any recourse after your side failed to perform on the contract.

I’ve heard how difficult it is and that a lot of pros have failed it.

I want to go for it even if I fail and fail terribly I want to try and go for it.

Then again, every month, there are appraisals that stand out as being so poor that you can only shake your head and wonder what in the heck they were thinking.These are people with their own biases and they are absolutely capable of failing to be good at their job.  

Option 3:  If Option 2 fails, offer him a JV position in the deal.

Who really benefits when a borrower who shouldn't be in a plan, gets his plan and fails after a few months or a few years?