He's only had the property for a year and to my understanding this is his first/only rental. 

Be sure whoever you go with understands that market.

So I understand that, but just wondering if there are other ways to structure this so that I retain ownership of these properties outside of the retirement account. 

@Frank Lodge  I can understand it taking time to find good deals but just know they are out there and don't give up.  

My questions are:1) Is their a good formula to understand what a fair price is for this property?

It seems that not paying your rent can get things moving pretty quickly, but understand that there is also a robust defense system here in the county.  

 William how hard is it to cash out refinance about one year after I buy the home if it has 25,000 equity in the home  I understand two years after a short sale I should be able to start using conventional financing again it's been about a year and two months since my short sale 

Understand, most brokers are getting only 10-30% of the commission to their firms, which is just the nature of the business these days.

I do understand that if I were to resell when the tenants are in place I would need to transfer the money, but I have some small maintenance items I want to address this month and instead of borrowing the money from my bank to make repairs can I use the last month rent money.  

I understand what you are saying @Wayne Brooks, I may need a letter of intent... which is better... but I'll just have to go meet them and give them my answer to purchase in a day of two while my applications are pending...I have no choice...