One alternative is to utilize leverage up front and set the balance aside in an account as @JD Martin mentioned, and re-evaluate your position every six-12 months. 

It is my belief that this is more a function of the low vacancy rate than the cumbersome eviction process.Prop 13 is unbelievable benefit for long-term investors. 

Can you grow some alternative in the same space now like lettuce or something like that and easily convert?

You can have a partner who meets the net worth requirement if it is not you.The alternative is to seek private funding for a year maybe two, reposition the property at a better stabilized run rate and then get a loan from a CU.

This is a fantastic leverage opportunity to get a price reduction or owner carry, as the alternative is admitting to the IRS that they lied.

You all have provided some creative alternatives that I will dive into and see what works with the seller and lender.

It seems like a reasonable alternative to a month to month lease, without it being a month to month lease.

Another alternative is to split it per tenant.

Alternatively, you could pay him a percentage on "top" of the work he supervises to get the house in shape.I would also think a "lease-up" fee would be appropriate. 

Your other alternative is to go completely electric.