We are going to hold out until next year, or sometime in the future when it would potentially be possible to buy it out right when they drop the price again
Good decision IMO. In my experience, most times, when someone tries 'too hard' to make a real estate deal work, regret soon follows. Listen to that inner-voice.
Good for you, treating this as an 'educational dry run' that's sharpened your focus and will better prepare you for when that next opportunity presents itself.