In reality, the current owner is losing a lot of money every month.

We’re not sure if this is the right move, as we would lose the additional monthly income from the rents, and also any equity the house may gain in the future, if we choose to wait to sell. 

In my opinion losing a relationship with a family member or even a friend over a few bucks isn't worth it.  

Hi Daniel,Antiquated law.At least you don't have to send it via "click-click" Morris Code from the telegraph station after riding there on a horse.Good Luck in your new venture!

and next how would the rent you lose out on by not renting it out compare to what it would cost you to live somewhere else?  

@Dan Handford, in my experience legal fees tend to become hefty when there is another general partner/issuer level entity joint venturing and that JV agreement has to be laboriously drafted because the syndicator and the separate entity both require control, but are unable or unwilling to partner within the same management company of the syndicate.

As I’m learning more and more about the process and hearing other insights, I am losing interest.

Give them room to fail without the risk of losing their job.

He can lose the EMD also.So the question remains what does the contract say about keeping the EMD if the buyer does not perform? 

I'm sure it's not an easy venture to get into and start.