Now there's no option #1 even on the table. 

Still learning too but have most of my systems down so I’m confident I can bring value to the table

I am thinking along the same lines as you of trying to either get the price down so the numbers look better without just paying interest (since I would like to have principal pay down prior to the 10 year balloon if I happen to not see any appreciation) or go to the negotiating table and try get a better interest rate.

This means:a) coming up with a plan of realistic recommendations (varies by what seller is able to do)b) helping the seller execute that plan to the best extent reasonable (varies by situation)c) staging every home, whether vacant or occupied (we do our own staging but it's professional grade, for occupied homes it's usually removing some furniture, shifting other furniture around to enhance flow and feel of space, sometimes adding furniture pieces if the originals date the home too much, i.e. trading out a coffee table or couch, etc.), usually replacing ALL art work and most decor items, advising on specific paint colors that are good for resale, consulting on outdoor plantings/landscaping and often just installing some plants ourselves. 

Note I used the low end on the ARV and high end on the rehab, which is what I would always recommend when starting to analyze a deal (aim to be on the conservative side).As you can see, you'd bring about 11k to the table initially and then at the refinance would likely have to bring another 3-5k to the table and would not be cash flowing at all (basically 0% cash on cash return).

You are only looking for a few pieces: king bed (if you can make it fit), bedside tables with lamps, a small table (if you don’t have a built in eating counter), a couch and a rug to tie it together.

The table below shows the metrics that I look at and should be helpful. 

He's down to invest but all he'd be bringing to the table is basically his w2 for getting financed.

Taking this money off the table would be smart, and allow you to reassess your strategy without a tight (1031) timeline. 

My advice to you is to acquire a skill set that brings more to the table, the numbers of a real estate deal are actually quite simple and it seems like you will be able to master that overnight.