Maybe we can work out a deal. 

In this situation, it is my recommendation that you work out your contract to be the one who benefits from the negotiation.  

Worst case scenario is a situation like yours which we all see how horrible it turned out, but best case scenario is none of the numbers work out and you don't lose much money but you really don't gain anything,  and therefore the whole experience is really like sitting in cash and therefore not even an investment.  

I guess now, I will look into an equity loan/ line of credit or possibly selling the duplex to get myself more cash flow if the numbers work out.  

However I would have a contract that makes earnest money non-refundable so if they do this switch and it doesn't work out then you have something for your time.This buyer might never have had the 20% down.

how you doing daryl  im still trying to work out the bugs with this but as i stated i am interested in finding rehabbers.

, design your terms, and work out what you will be paid with interest..Sometimes, it also makes sense if there is not available financing due to the quality of the asset (think run down property) or simply does not qualify for most program (broken condo) or even where terms are tougher (like 5+ units/ commercial).Risk?

Let's talk and work out the details, no obligation.

We have used seller carry notes where possible, for these reasons: because you don't have to jump through all the hoops as with conventional, your down payment amount is negotiable, there is no PMI with a private seller, you work out something that is mutually beneficial, we set up the payments through a escrow at a title company, it is a "real" loan to both seller and buyer, but simply is not reported on your credit report, sometimes older sellers would take a big tax hit if they sell and get their funds in one big lump so an "installment sale" or payments over time allows them to spread out that tax burden. 

I also understand I am putting myself in the mindset as if all were to work out correctly, but:Is my only option in this situation to refer the deal to someone else?