Has it always functioned previously?

I understand this is not sustainable with the mortgage so we are going to pay $50k on the principal to make it self-sustainable.We should be able to save approximately $50k/yr combined for the next 5 years safely.Should we pay 40k/yr additionally on the home principal to get it paid off in under 10 years to earn fixed income and sell when we want to retire/start a business?

With a combined experience of nearly 40 years as lawyers in Nevada doing solely complex transactions, Drury Galati Ltd. has the experience to get the deal negotiated and closed.

The third option would combine the 2, flipping houses while I study.

If I had a buddy that wanted to put 10k into the investment could I use his money and my money combined as "my funds in reserve" to get the loan.

Biggerpockets search function - Use the search function to see if a BP colleague requested a CPA in your area.

Same goes true for people who value image and the idea of things more than functionality ("I think gold-plated stoves are something any decent person should want"). 

Maybe you can convince everyone involved to convert to a community owned system, with a shared maintenance agreement, reserve funds,Just need to find the smoothest path forward to needed upgrades like an above ground cistern, pumps, backup generator, better filters, or whatever to make the system function 100% of the time$1500 is minimal, spend it if that's the way forward.

After walking the property with my contractor, it's obviously not newer, and it's definitely not functioning properly.  

When you are licensed and perform this function it has to be very clearly disclosed and all parties need to agree.