It sounds like Johnny should take care of the tax lien, then he will be able to move forward with the purchase.

As I see it, you basically have 3 options:1 - Move forward and get the clock ticking on equity pay down using OPM.2 - Hold off, and see if the market in your area becomes more favorable to buyers (how long will that take, and how much equity would you have in the subject property if you chose option 1?)

Well fast forward about 10 years, and I am not letting the naysayers hold me back. 

Thank you for reading and looking forward to your responses.

I realize that there are many ways to do this and being a newbie to this I a am open  advice and suggestions of what makes the most sense going forward.

The "carry trade" is sexy until it destroys your balance sheet.Short term, high value add deals that you can refi would be my strategy although in most cases  I wouldn't risk my home to do it.If you can live with a permanently higher payment then do a cash out refi and keep your powder dry for the opportunity with solid yield.If I sound like I'm speaking martian right now then don't move forward!

Profits moving forward are split 50/50 in perpetuity.4.

Many of my friends who had bought there were forced to not move or rent it out even though they did not want to.Fast forward to 2017: The home I originally bought and sold in Chandler is now quoting for about 50% up from my original basis, 10 years later (ie, it went down by about 12-14% and then recovered all the way to +50%).

We know that we can easily and quickly rent the homes out for $600-$700/month, but instead of renting to a tenant, we have an idea that might help out the right person (who does not have start up cash) to get started in real estate investing and I'm looking for advice on whether or not to go forward with it. 

@Carrie AngyalWhen you have an inspection and ask for adjustments, the original deal is null because you no longer have a meeting of the minds.Moving forward means both parties have to agree to continue.